Peako Limited reports a quiet quarter in East Kimberley exploration due to seasonal conditions but successfully completes a significant capital raise, bolstering its cash position to nearly A$2 million.
- No field exploration conducted due to wet season limiting access
- Raised approximately A$1.18 million through tranche 2 capital raising
- Issued over 392 million fully paid ordinary shares and 304 million unlisted options
- Small shareholder sale facility sold 14.5 million shares to reduce holding costs
- Cash balance increased to A$1.975 million at quarter end
Exploration on Hold Amid Seasonal Challenges
Peako Limited (ASX: PKO) provided its quarterly activities report for the period ending 31 March 2025, highlighting a pause in field exploration across its East Kimberley tenements. The company’s ground-holding in this geologically diverse region, known for base and precious metals including copper, lead, zinc, silver, gold, and platinum group elements, was inaccessible due to the continuing wet season. This seasonal limitation prevented Peako from advancing its exploration programs during the quarter.
Despite the operational standstill, Peako remains focused on the potential of its Koongie Park Formation and Eastman Complex projects, which host volcanogenic massive sulphide and magmatic nickel-copper mineralisation styles respectively. The company continues to assess opportunities to unlock value across its tenement package once conditions improve.
Capital Raising Strengthens Financial Position
In a key development, Peako completed tranche 2 of its previously announced capital raising, issuing 392.6 million fully paid ordinary shares and 304.6 million unlisted options exercisable at $0.0075 each. This tranche raised approximately A$1.18 million, significantly bolstering the company’s cash reserves. The total cash balance at the end of the quarter stood at A$1.975 million, up from A$1.156 million in the prior quarter.
The capital raising proceeds provide Peako with a stronger financial footing to support future exploration activities and business development initiatives. The company reported operating cash outflows of A$359,000 for the quarter, reflecting ongoing administrative and corporate costs, alongside exploration-related expenditures.
Small Shareholder Sale Facility Eases Holding Costs
Peako also implemented a small shareholder sale facility aimed at shareholders holding less than A$500 in market value of shares. This initiative allowed 640 shareholders to sell a total of 14.5 million shares without incurring brokerage or transaction costs, effectively reducing the administrative burden of servicing smaller holdings. Shareholders who participated received payments at a rate of $0.0026 per share.
The facility reflects Peako’s commitment to shareholder engagement and cost efficiency, particularly for retail investors with minor holdings. The company received 67 valid retention forms from shareholders choosing to keep their shares, indicating a degree of confidence in Peako’s longer-term prospects.
Ongoing Business Development and Future Outlook
Peako continues to review project opportunities both within Australia and internationally, aiming to complement its East Kimberley base and precious metals portfolio. While discussions and due diligence are ongoing, no definitive decisions have been made to date. The company’s leadership remains focused on creating shareholder value through strategic growth and exploration success once field conditions permit.
Payments to related parties, including directors’ fees and consulting services, amounted to approximately A$55,000 during the quarter, consistent with prior periods and reflecting routine corporate governance practices.
Looking ahead, Peako’s next steps will hinge on the conclusion of the wet season, enabling the resumption of fieldwork and the potential delivery of new exploration results. Investors will be watching closely for updates on business development progress and any new tenement acquisitions or disposals.
Bottom Line?
Peako’s strengthened cash position sets the stage for renewed exploration momentum post-wet season, but operational progress remains weather-dependent.
Questions in the middle?
- When will Peako be able to resume field exploration in East Kimberley and what initial targets will be prioritised?
- What are the prospects and timelines for converting ongoing business development discussions into concrete projects?
- How will the company deploy its increased cash reserves to maximise shareholder value in the near term?