- Peninsula Energy (PEN) has received commitments to raise $13.4 million through a placement to restart operations at its Lance Project in Wyoming, U.S.
- The energy stock will issue over 89.3 million shares to institutional investors at 15 cents per share — representing a 19 per cent discount to the last closing price of 18.5 cents
- The money will be used to purchase 300,000 pounds of uranium at US$31.35 (roughly A$40.50) per pound, which reflects the current uranium spot price
- This aligns with Peninsula’s goal of transitioning its Lance Project into a low-pH in-situ recovery (ISR) operation
- In addition, PEN is planning to raise up to $2 million through a share purchase plan (SPP)
- Company shares have dropped 9.46 per cent to trade at 16.8 cents
Peninsula Energy (PEN) is set to raise up to $15.4 million through a placement and share purchase plan.
The energy stock received commitments from institutional and high net worth investors to raise $13.4 million through a share placement.
89,335,163 fully paid ordinary shares will be issued at 15 cents, which represents a 19 per cent discount to the last closing price of 18.5 cents on May 25 and a 13 per cent discount to the 20-day volume-weighted average price of 17.2 cents.
Peninsula will use the money to settle the purchase of 300,000 pounds of natural uranium concentrates.
The company entered an agreement with an undisclosed party to buy 300,000 pounds of uranium at US$31.35 (roughly A$40.50) per pound which reflects the current uranium spot price.
This aligns with Peninsula’s plan to transition its Lance Project into a low-pH in-situ recovery (ISR) operation.
“The acquisition of physical uranium underpins our focus on the transition of the Lance Project to a low pH ISR operation,” Managing Director and CEO Wayne Heili said.
The 300,000 pounds of uranium may help to provide a source of funding so PEN can restart operations at the Wyoming-based project after a final investment decision is made. A working inventory of uranium will also create flexibility in securing offtake deals necessary to restart operations.
Additionally, it will allow the company to manage long-term sales contracts which it has already secured until 2030 at prices that are well above current levels.
“Importantly, holding uncommitted uranium inventories at a time when there is a strong and continued push by the U.S. Government to support nuclear power generation and the domestic production of critical minerals like uranium, enhances our ability to successfully participate in expanding market opportunities,” he added.
In addition to the placement, PEN is planning to raise up to $2 million through a share purchase plan (SPP). Eligible shareholders may subscribe for up to $30,000 worth of shares at the same issue price as the placement.
The $2 million will be used for corporate purposes and working capital.
The SPP will be open from June 4 until June 18, with new shares expected to trade on June 30.
Company shares have dropped 9.46 per cent to trade at 16.8 cents at 10:43 am AEST.