- Peninsula Energy (PEN) completes its $32 million placement to restart uranium production at the Lance projects in the US state of Wyoming.
- The company issued more than 244 million shares to private investors at 13.1 cents to raise the funds and has also planned a share purchase plan to raise another $3 million.
- Peninsula is using the money to transition the Lance projects to a low-pH in-situ recovery process, as well as restart production within the Ross area and advance the Kendrick production area.
- Company shares are down 12.9 per cent to trade at 13.5 cents at 2:01 pm AEDT.
Peninsula Energy (PEN) has completed its $32 million placement to restart uranium production at the Lance projects in the US state of Wyoming.
The company issued roughly 244.3 million shares to new and existing institutional and sophisticated investors at 13.1 cents per share to raise the funds, representing a 15.5 per cent discount to its closing price on November 23.
The uranium miner said the placement received “significant” support both domestically and internationally.
“We are delighted with the strong support we have received for the placement, and I would like to thank our existing and new institutional investors for their support,” Managing Director and CEO Wayne Heili said.
In addition to the placement, the company hopes to raise a further $3 million through a share purchase plan (SPP). The SPP will be open from December 2 until December 16, during which time eligible shareholders may subscribe for up to $30,000 worth of shares.
As announced to the market on November 24, Peninsula Energy is using the funds from both the placement and SPP to restart uranium production activities at the Lance projects in Wyoming.
Lance is the only uranium in-situ recovery (ISR) project in the US that is fully permitted to utilize the low-pH in-situ recovery (ISR) recovery process. As such, some of the capital raise funds are going towards transitioning the Lance project to a low-pH ISR process.
The money will also be used to advance the Kendrick production area and restart production within the Ross production area.
Peninsula expects to begin production activities at Lance in the first quarter of next year.
Company shares were down 12.9 per cent to trade at 13.5 cents at 2:01 pm AEDT.