Peninsula Energy Ltd (ASX:PEN) (OTCMKTS:PENMF) has commenced trading on the US OTC (over-the-counter) Pink Market under the code PKC:PENMF and will apply to upgrade its market tier to the OTCQB venture market after increased North American based investor interest in the company and its 100%-owned Lance Project in Wyoming USA.
The ASX is the company’s only listing, however, entry into the OTC markets – initially through the Pink Market and then the OTCQB – increases the ease with which North American investors can purchase shares in Peninsula.
“Growing US support for Peninsula”
OTC Markets offer a cost-effective method to provide North American investors access to Peninsula securities, providing a nexus to the largest capital market globally.
Peninsula managing director and CEO Wayne Heili said: “Expansion into this additional trading marketplace is due to longstanding interest and growing support for Peninsula in the United States.
“The US market has demonstrated a keen awareness of Peninsula and its Lance Project that can resume production in the near term.”
The company has confirmed that admission to the OTC Market is non-dilutive, as no additional capital is required to be raised and no new shares will be issued.
Exposure to US Strategic Uranium Reserve buying program
The recent establishment of the US National Strategic Uranium Reserve and an approved US Government budget which directs the US Department of Energy to allocate US$75 million toward purchasing US-produced uranium, has buoyed the domestic sector.
Notably, Peninsula is the only ASX-listed uranium company positioned to immediately benefit from the program.
Heili said: “In late December 2020, the US government funded the establishment of a Strategic Uranium Reserve with a US$75 million allocation for FY-2021.
“Only a handful of companies will be able to supply material into the Uranium Reserve and Peninsula is fortunate to be in a strong position as the only ASX-listed company with exposure to this opportunity.”