Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Peninsula Energy (PEN) has agreed with its lenders on a two-month extension to achieve partial monetisation of a uranium concentrate sale
  • The uranium miner has been pursuing the contract monetisation to reduce its debt and extend the repayment date from October 2020 until April 2021
  • Last month the company estimated the partial monetisation would reduce its US$16.25 million debt by US$11 million
  • However, Peninsula now estimates this figure could be lower due to the rising spot price for uranium
  • Peninsula Energy closed 19.4 per cent lower today at 14.5 cents each

Peninsula Energy (PEN) has agreed with its lenders on a two-month extension to achieve partial monetisation of a uranium concentrate sale.

In November last year, the uranium miner restructured its US$17 million (~AU$26.3 million) convertible note facility with Resource Capital Fund, Pala Investments and entities associated with Collins Street Value Fund.

Under the new agreement, the majority of the debt would be repaid through a partial contract monetisation which was initially due to be completed by April 30, 2020. Now that date has been extended until June 30, 2020.

If Peninsula completes the partial monetisation by the end of June then the maturity date of the loans will be pushed back from October 31, 2020 until April 22, 2021.

Last month, the company reduced its debt by US$750,000 (roughly A$1.16 million) to US$16.25 million (roughly A$25.16 million) through a debt-for-equity swap with Resource Capital Fund.

At the time, Peninsula said it expected the partial monetisation to be to the tune of at least US$11 million (approximately AU$17.03 million) and to be completed in the near future, as the final details of the transaction were already being negotiated.

However, progress has been disrupted by COVID-19 working arrangments and now, with increases in the spot price for uranium, the company estimates the total value of the monetisation could be lower than US$11 million (approximately AU$17.03 million).

Peninsula Energy closed 19.4 per cent lower today with shares prices at 14.5 cents each.

PEN by the numbers
More From The Market Herald
MetalsGrove Mining (ASX:MGA) - Managing Director, Sean Sivasamy

" MetalsGrove Mining (ASX:MGA) begins soil sampling at Upper Coondina

MetalsGrove Mining (ASX:MGA) has begun a soil sampling program at its Upper Coondina lithium project in…
Bryah Resources (BYH) - CEO, Ashley Jones

" Bryah Resources (ASX:BYH) raises $1.4m via placement

Bryah Resources (ASX:BYH) has received firm commitments from sophisticated and professional investors to raise $1.43 million…
The Market Herald Video

" Meeka Metals (ASX:MEK) banks fresh capital on sale of Gecko North

Meeka Metals (ASX:MEK) completes the sale of its Gecko North project in Western Australia to LithGold…
Godolphin Resources (ASX:GRL) - Managing Director, Jeneta Owens

" Godolphin Resources (ASX:GRL) receives final assays from Cyclops

Godolphin Resources (ASX:GRL) has received the final assays from the two-hole drilling and soil sampling program…