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Peninsula Energy flooded with demand for in-the-money raising

Peninsula has more than doubled its SPP size due to high demand.
Peninsula Energy flooded with demand for in-the-money raising
Peninsula shares are up 15% over the past 3 months

Peninsula Energy (ASX:PEN) has resolved to increase its share purchase plan (SPP) to raise $14.2 million from the original $6.5 million after receiving overwhelming demand.

The SPP increase came after the company received more than 1,340 applications from eligible shareholders for a total of $15.02 million.

With shares trading at $0.62, the offer was in-the-money as eligible shareholders were able to subscribe for up to $15,000 worth of shares priced at $0.50.

In line with Peninsula’s debt reduction drive, additional proceeds from the SPP will be used to repay all debt drawn on the Investec revolving loan facility.

Gus Simpson, managing director, commented: “In light of the significant SPP demand, the board felt it appropriate to maximise shareholder participation by keeping the scale back to a minimum.”


Background

Peninsula is producing uranium from the Lance Projects in the U.S. state of Wyoming.

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

Production for the 6 months ended 31 December 2016 was 84,000 pounds uranium.

Multiple headers houses are used to extract uranium and Stage 1 steady state production will see up to seven header houses in simultaneous operation.

Funding from the recent capital raisings will be used for the construction and roll-out of additional header houses (header houses #8 to #10) at the Lance Projects.

View full PEN profile

Peninsula Energy Timeline

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