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Peninsula Energy completes option conversion, Pala Investment Holdings moves to 19.9%

Published: 15:48 04 Jul 2012 AEST

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Peninsula Energy’ (ASX: PEN) is cashed up to fast track development of the Lance ISR Uranium projects in the Powder River Basin, northeastern Wyoming, after the completion of the PENOA option conversion.

Cornerstone investor Pala Investment Holding has moved to a 19.9% stake in Peninsula after underwriting 43 million PENOA options at A$0.03 each, for a total consideration of A$1.29 million. Clients of Hartleys and Canaccord BGF took up the remaining 6.05 million option shortfall (A$181,500).

This brings the total funds raised by the exercise of the PENOA option class to $12.5 million.

“The company welcomes the strong take up of the PENOA options by our shareholders and the expanded participation of our cornerstone shareholder Pala,” executive chairman John Simpson said.

This allows Peninsula to shorten the overall project development timeline by starting construction work and ordering long lead items for the Central Processing Plant.

This work includes installation and testing of a deep disposal well, installation of production monitoring wells as well as civil works for the plant.

Shares in Peninsula Energy last traded at A$0.037, presenting those who exercised options with an immediate gain on their investment.

 

Lance ISR Projects – “spectacular” drilling results and moving to production

Peninsula had last month delivered very high grades and widths from drilling with 105 of the 159 holes encountering mineralisation greater than 100ppm

These included highlights such as:

- 15.0 ft at 1,475ppm eU3O8, including 4.0 ft at 4,420ppm eU3O8;
- 16.5 ft at 1,189ppm eU3O8, including 3.0 ft at 1,970ppm eU3O8;
- 17.0 ft at 605ppm eU3O8, including 2.5 ft at 3,170ppm eU3O8; and
- 35.5 ft at 214ppm eU3O8, including 7ft at 550ppm eU3O8.

This drilling is focused on converting Inferred Resources to the higher confidence Indicated category at the planned Kendrick Production Unit located to the west of the Ross Production Unit.

Looking further down the track, Peninsula’s technical team has identified and priority ranked over 500 follow-up drill targets within the Lance Projects and estimated that these drill targets will form the basis for ongoing exploration for a staggering 5-10 years.

The Lance ISR Projects currently host a JORC Resource of 51.5 million pounds uranium and is targeted for production in the second half of 2013.

A Feasibility Study, which excludes the vanadium credits, has estimated a project cash flow of $905 million on revenue of $2.2 billion.

Importantly, project funding is on track for Lance and this latest capital injection builds on the $13.8 million cash in the bank Peninsula had at the end of the March quarter.

 

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on 22/11/23