Peel Mining Ltd. said Sept. 7 that it will raise A$12.3 million from an oversubscribed placement and a fully underwritten rights issue.

The placement to institutional and strategic investors comprised 10 million new shares at 36 Australian cents apiece and was oversubscribed, raising A$3.6 million.

St Barbara Ltd. subscribed for A$1.8 million, raising its stake in the company to 17.9%.

Meanwhile, approximately 24.3 million new shares will be offered to eligible shareholders under a fully underwritten nonrenounceable pro rata rights issue to raise approximately $8.7 million.

The capital raised will fund the delivery of a maiden JORC resource at the company's Wagga Tank zinc property, advance its Mallee Bull polymetallic mine toward production, and complete an acquisition of 2% net smelter royalty over Wagga Tank from MMG Ltd.

Following the acquisition of the Wagga Tank NSR, Peel will have unencumbered 100% ownership of the tenements.