- Peninsula Energy (PEN) is set to raise $9.1 million for the Lance Projects uranium mines
- The company will raise $7 million in a placement offered to institutional and sophisticated investors at a price of $0.165 per share
- Peninsula will also issue an entitlement offer to eligible shareholders and aims to raise a further $2.1 million.
- Peninsula is down 12.20 per cent on the market this morning, trading at 18¢ per share
Peninsula Energy (PEN) is set to raise $9.1 million for the Lance Projects uranium mines.
The company will raise $7 million in a placement, to institutional and sophisticated investors at a price of $0.165 per share. It will issue 42.42 million shares for the placement.
In addition, the company will issue a further 12.65 million shares at the same price as the placement to raise $2.1 million for an entitlement offer. The entitlement will be offered to eligible shareholders.
Eligible shareholders shall be entitled to subscribe for 1 new share for every 20 shared held on the record data. The entitlement offer opens on December 10 and closes January 6.
The majority of funds will be used for ongoing site costs and low pH de-risking and optimisation activities at the Lance Projects. Funds will also go towards purchasing uranium for the delivery to customers.
Peninsula is a uranium mining company which in-situ recovery operations in 2015 and its Lance Projects in Wyoming, USA.
CEO Wayne Heili would like to welcome the new shareholders to Peninsula register and to thank its existing institutional and sophisticated investors who have increased their holdings.
“We feel this placement and entitlement offer is an attractive value proposition for both new and existing shareholders, particularly with the near-term positive catalysts that could come through the U.S. President’s implementation of the U.S. Nuclear Fuel Working Group’s recommendations,” Wayne said.
“Peninsula’s efforts to prepare the Lance project for low pH ISR production operations and to strengthen our financial position are both forward-thinking and timely,” he added.
The company has entered into binding agreements with its lenders, which has provided it with an extension of the repayment date for its convertible note. The convertible note is expected to be approximately $8- $10 million.
Peninsula is down 12.20 per cent on the market this morning, trading at 18¢ per share at 11:34 am AEDT.