PERTH (miningweekly.com) – Uranium developer Peninsula Energy will raise A$9.1-million through a share placement and entitlement offer to fund work at its Lance uranium project, in Wyoming.
An initial A$7-million will be raised through an institutional placement, with 42.42-million shares to be issued at a price of 16.5c each to new and existing institutional and sophisticated investors.
The institutional placement will be undertaken under Peninsula’s existing capacity, and will not require shareholder approval.
The company would also undertake a pro-rata renounceable entitlement offer, priced at 16.5c each, to raise a further A$2.1-million. Under the entitlement offer, shareholders would be able to subscribe for one new share for every 20 shares held.
Peninsula MD and CEO Wayne Heili on Friday said that the company was pleased to strengthen the balance sheet, which will underpin its transition to a low pH operation at the Lance project.
“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 US President’s implementation of the US Nuclear Fuel Working Group’s recommendations,” Heili said.
“Peninsula’s efforts to prepare the Lance project for low pH in-situ recovery production operations and to strengthen our financial position are both forward thinking and timely.”
Funds raised will go towards ongoing site operational costs and low pH de-risking and optimisation activities at the Lance project, as well as the purchase of uranium for delivery to customers under existing contracts, debt servicing costs and for general working capital purposes.