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  • Peninsula Energy successfully secures A$60 million in equity to fund the restart of uranium production at its Lance project
  • A placement to institutional and sophisticated investors, along with a Security Purchase Plan (SPP), will support construction and development works
  • The move positions Peninsula to be the largest US-based, fully independent, end-to-end producer of dry yellowcake
  • The company’s CEO emphasises the global momentum of uranium and nuclear energy, highlighting Lance’s strategic importance in a growing, supply-constrained market

Peninsula Energy (ASX:PEN) has garnered strong support from both existing and new institutional and sophisticated investors, securing A$60 million to fuel the resumption of uranium production at its Lance Project. 

The A$50 million placement involves the issuance of approximately 666.7 million Placement Shares at A$0.075 per share, accompanied by one free attaching option for every two Placement Shares.

This funding will propel pre-production construction activities at Lance, aligning with the recently revealed Life of Mine plan for the Ross and Kendrick production areas.

Binding commitments secured

Binding commitments secured for A$50 million placement to global institutional and sophisticated investors at A$0.075 per share.

A Security Purchase Plan (SPP) targeting up to A$10 million will be open to eligible shareholders.

Participants in both the Placement and SPP will receive one free attaching option for every two new shares allocated.

Shareholder approval required

The initiatives are subject to shareholder approval at an Extraordinary General Meeting in January 2024.

The placement, priced at a 31.8 per cent discount to the 5-day VWAP on 15 November 2023, will be finalised pending shareholder approval at an Extraordinary General Meeting scheduled for January 10, 2024.

The Placement Shares, along with attaching options, aim to generate up to A$40 million in additional funding for construction and ramp-up activities at Lance.

“We are pleased to receive such significant support from many existing and new, high quality institutional and sophisticated investors, providing us with a large amount of equity to allow completion of Plant construction and commencement of commercial production at Lance in  late 2024,” Peninsula’s CEO, Mr. Wayne Heili said.

PEN has dropped 32 per cent to trade at 8.1 cent at 1:00pm AEDT

PEN by the numbers
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