- 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.