To advance the company's portfolio of uranium projects, Peninsula Energy (ASX: PEN) will raise up to A$31.6 million through a cornerstone investor and a placement.
The capital raising will comprise 288.3 million shares at $0.075 to the US$1 billion investment company Pala to raise A$21.6 million, together with one free attaching listed option for every two shares exercisable at $0.03 on or before 30 June 2012.
Of this portion of the capital raising, 121.6 million shares and 60.8 million options are subject to shareholder approval.
A further A$10 million potentially will be raised to European, Asian and Australian institutions, at the same price and the same option conditions.
In addition, Peninsula has also secured a A$100 million equity facility with Pala, adding to the company's funding flexibility.
Under the facility terms, Peninsula can draw down on the facility over a five year period, subject to Pala’s approval of the use of funds.
The Peninsula uranium projects to be advanced are:
- Resource exploration and delineation drilling at the Lance Projects in Wyoming, USA;
- Drilling of disposal wells at the Lance Projects;
- Completion of the feasibility study at the Lance Projects; and
- Drilling and scoping studies at the Karoo Projects in South Africa.
Hartleys Limited and BGF Equities acted as brokers and lead managers to the institutional placement.