logo-loader
viewPeninsula Energy Ltd

Peninsula Energy raises $7 million from share placement; $2.1 million offer to open next month

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 the US.

Peninsula Energy Ltd - Peninsula Energy raises $7 million from share placement; $2.1 million offer to open next month
Peninsula will also purchase uranium for delivery to customers under existing term contracts

Peninsula Energy Ltd (ASX:PEN) has received commitments to raise $7 million via a placement of shares to institutional and sophisticated investors at a price of 16.5 cents per share.

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.”

Quick facts: Peninsula Energy Ltd

Price: 0.16 AUD

ASX:PEN
Market: ASX
Market Cap: $47.28 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Peninsula Energy Ltd named herein, including the promotion by the Company of Peninsula Energy Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Peninsula Energy files Interim Restoration Report on Lance...

Peninsula Energy (ASX: PEN) CEO Wayne Heili joined Steve Darling from Proactive Vancouver on Skype from Wyoming and their Lance ISR Uranium project. Heili sharing news the company has filed an Interim Restoration Report to the Wyoming Department of Environment Quality. Heili discusses what...

1 week, 6 days ago

2 min read