Peako Limited Quarterly Activities Report - 30 June 2024
PKO (PKO) Share Update July 2024 Monday 29th
Peako Limited Reports Positive Exploration Results and Corporate Changes
Peako Limited (ASX: PKO) has released its Quarterly Activities Report for the period ended 30 June 2024, highlighting promising exploration results in the East Kimberley region and significant corporate changes.
Instant Summary:
- Positive exploration results at Eastman PGE Project.
- Significant PGE mineralisation found beyond chromite lenses.
- Launch of a fully underwritten entitlement offer to raise $1.054 million.
- Upcoming changes in the Board of Directors.
Exploration Highlights
Peako Limited's exploration efforts in the East Kimberley region of Western Australia have yielded promising results. The company's focus on the Eastman PGE Project has revealed significant PGE mineralisation beyond the previously explored chromite lenses. The Brumby Prospect, located in the eastern zone of the Eastman PGE Intrusive Complex, has shown higher-grade PGE mineralisation extending over a 680-meter strike length.
Historical exploration had focused on narrow and discontinuous chromite lenses, but Peako's recent drilling has confirmed that PGE mineralisation is present throughout the ultramafic units of the intrusion. This discovery suggests a more extensive PGE mineralised system than previously thought, with mineralisation zones plunging moderately to the southwest and remaining open at depth.
Corporate Developments
Following the end of the quarter, Peako launched a fully underwritten pro-rata non-renounceable entitlement offer to raise up to approximately $1.054 million before costs. Eligible shareholders can subscribe for 2 new Peako shares for every 3 existing shares held at an offer price of $0.003 per new share. Additionally, each subscriber will receive one new option (exercisable at $0.0075 before 28 February 2027) for every two new shares subscribed for and received under the offer.
On 17 July 2024, Peako announced planned changes to its Board of Directors. Mr. Geoffrey Albers intends to retire as a director upon the completion of the entitlement offer. It is proposed that Mr. Gernot Abl will be appointed as Non-Executive Chairman of the Board. Mr. Abl brings over 20 years of experience in law, corporate finance, and strategic consulting. Additionally, Dr. Louis Bucci, an economic geologist with over 20 years of experience in the mineral resources sector, will be appointed as Non-Executive Director.
Additional Projects
Peako is also advancing its Minneroo Pool Lithium Project, located in E80/5703. The company has identified potential lithium-bearing pegmatite systems and large untested alkaline granitoid bodies within the project area. Historical mapping has shown anomalous Nb, Sn, Ta, REE, Pb, and Cu mineralisation, but no previous lithium exploration has been conducted in this area. Initial reconnaissance and reprocessing of satellite imagery have identified numerous pegmatites and other areas of interest for future field validation.
The positive exploration results at the Eastman PGE Project are likely to boost investor confidence in Peako Limited. The discovery of significant PGE mineralisation beyond the chromite lenses suggests a more extensive resource, which could enhance the company's valuation. The fully underwritten entitlement offer will provide additional capital to support ongoing exploration and development activities.
Investor Reaction:
Analysts are expected to react positively to the exploration results, given the potential for a major PGE resource at the Eastman PGE Project. The corporate changes, including the appointment of experienced professionals to the Board, are also likely to be viewed favorably by investors. However, the company's financial position and ability to raise additional funds will be closely monitored.
Conclusion:
Investors should keep an eye on Peako Limited's future exploration updates and the final outcomes of the entitlement offer. The company's strategic focus on expanding its resource base and strengthening its Board of Directors positions it well for future growth. Subscribing to Peako's updates will provide valuable insights into the company's progress and potential investment opportunities.