In addition to the institutional placement, eligible shareholders will be offered the opportunity to participate in a pro-rata renounceable entitlement offer on the same terms.
The entitlement offer is expected to raise about $2.1 million.
Net proceeds from the institutional placement and the entitlement offer will be used for ongoing site operational costs and low pH de-risking and optimisation activities at the Lance Projects in Wyoming, US, the purchasing of uranium for delivery to customers under existing contracts, debt servicing costs and for general working capital purposes.
Key dates for entitlement offer
Peninsula managing director and CEO Wayne Heili said: “We are very pleased to be able to strengthen the company’s balance sheet and underpin our transition to low pH operations at the Lance Projects by securing this funding support.
“On behalf of the board I’d like to welcome the new shareholders to our register and to thank our existing institutional and sophisticated investors who have increased their holdings.
“We feel this placement and entitlement offer is an attractive value proposition for both new and existing shareholders, particularly with the near-term positive catalysts that could come through the US President’s implementation of the U.S. Nuclear Fuel Working Group’s recommendations.
Use of funds
The new funds raised together with existing cash reserves and proceeds from the sale of uranium, will be used for the following purposes:
- ongoing site operating costs at the Lance Projects, including retention of key staff;
- payment for purchases of uranium for delivery to customers under existing term contracts;
- low pH de-risking and optimisation activities at the Lance Projects;
- convertible note debt servicing; and
- general working capital purposes.
“Forward-thinking and timely effort”
“Peninsula’s efforts to prepare the Lance project for low pH ISR production operations and to strengthen our financial position are both forward-thinking and timely.
“We now offer all of our existing shareholders the opportunity to participate on the same terms through the Entitlement Offer.
“We acknowledge and appreciate the strong support of Euroz and Canaccord for leading this successful fundraising process.”