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Peninsula Energy to boost cash position with underwritten share plan

The plan will offer $15,000 at $0.50 a share, the same price as the placement.
Peninsula Energy to boost cash position with underwritten share plan
Offer documents will be dispatched this week

Peninsula Energy (ASX:PEN) is set to further boost its cash position with the underwriting on a share purchase plan (SPP).

Peninsula is already expected to receive very strong interest as the offer is heavily in the money, as the company's shares have recently traded firmer following a circa 30% jump in the price of uranium.

The company is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Gus Simpson, managing director and CEO, commented:

“We are pleased to offer the opportunity to our existing shareholders to participate in this SPP, which together with the recently completed placement enables the company to continue the production ramp-up under the recently implemented streamlined operating strategy.

"We have seen a buoyant start to the new year in the uranium industry, with increases in the spot price and the announcement that Kazatomprom will reduce production by 10% this year reflected in widespread increases in uranium company valuations.

"This in turn has resulted in an attractively priced investment opportunity for Peninsula’s existing shareholders”.

SPP details

The plan will offer $15,000 at $0.50 a share, the same price as the recent placement.

Offer documents will be dispatched this week.

Peninsula is currently trading at $0.73, and a fortnight ago spiked to $0.91, as the bear market in uranium came to an abrupt halt, and investors scrambled to snap up stocks with exposure to the commodity.

UK stockbroker Numis Securities has underwritten the offer.

Peninsula comment

The company is expecting strong demand, and noted that it may scale back applications to the extent and in the manner it sees fit, if they exceed $6.5 million in aggregate.

Peninsula said eligible shareholders are encouraged to submit their applications early.

View full PEN profile

Peninsula Energy Timeline

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