The following is an extract of a research report by Hartleys on Peninsula Energy (ASX: PEN).
Hartleys has increased its price target to $0.12 from $0.09.
Uranium developer / explorer, Peninsula Energy (ASX: PEN) has continued its track record of delivery on its goals, having achieved significant milestones at its 100% owned Lance In Situ Recovery Uranium Project in the USA.
The company has attracted a cornerstone investment of $21.6 million from specialist resources private equity group Pala Investments AG.
Pala agreed to provide a A$100 million line of equity, providing Peninsula with the option around development funding and growth strategy.
Peninsula also placed an additional $10 million to institutional investors. All shares were placed at $0.075 with a 1 for 2 attaching option with a strike of $0.03.
Two key regulatory milestones have been achieved with the submission of the Combined Source and Byproduct Material License application as well as the Permit to Mine application.
These form the main permits required for commencement of development and then production.
The Material License application is submitted to the Nuclear Regulatory Commission (NRC), who recently visited site.
This was the first site visit by the NRC to any uranium project.
The Permit to Mine is submitted to the Wyoming Department of Environmental Quality (WDEQ).
The company has been able to complete its milestones very close to, and often ahead of, it's predicted schedule and remains on track for first production in 2012.
Hartleys rate Peninsula as a BUY and have increased its price target to $0.12 from $0.09.
Peninsula last traded at $0.10.