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- Peninsula Energy (PEN) will restart uranium production operations at the Lance projects in Wyoming after completing a final investment decision (FID)
- The company is raising $35 million through a placement and share purchase plan to transition to a low pH in-situ recovery process and to advance the Kendrick production area
- Peninsula Energy expects production activities to commence at the Ross area in Q1 2023 and will also undertake a resource drilling program at Kendrick
- Shares in Peninsula last traded at 15.5 cents at 3:24 pm AEDT
Peninsula Energy (PEN) will restart uranium production operations at the Lance projects in Wyoming after completing a final investment decision (FID).
The company will use funds from a $35 million equity raise to support the restart, with funds specifically going towards transitioning to a low-pH in-situ recovery (ISR) process and to advance the Kendrick production area.
Interestingly, Lance is the only uranium ISR project in the US that is fully permitted to utilise the low-pH ISR recovery process.
The equity raise comprises a fully underwritten institutional placement to raise $32 million and a share purchase plan (SPP) to raise up to another $3 million.
Under the placement, Peninsula will issue approximately 244.3 million shares to investors at 13.1 cents each, which represents a 15.5 per cent discount to the last closing price on November 22.
The placement is scheduled to settle on December 1.
The SPP is expected to open on December 2 with eligible shareholders able to purchase up to $30,000 worth of shares at the same price as the placement.
“It is with a tremendous sense of excitement that we are advancing the Lance projects back into production,” Managing Director and CEO Wayne Heili said.
“Our team has put an enormous amount of work over recent years into the transition to a low-pH ISR operation and we will be confidently moving forward to production,” he added.
Peninsula Energy expects initial production activities at the Ross area will begin in the March quarter of 2023. At some point next year, the company will also undertake a resource drilling program at Kendrick to upgrade known resources from the inferred category to the measured and indicated categories.
Prior to that, Peninsula will file both license and permit amendment applications to include Kendrick along with Ross in the fully licensed area of the Lance projects.
Shares in Peninsula held steady at 15.5 cents at 3:24 pm AEDT.
