Peninsula raises A$60m to fund US uranium mine restart
Australia-listed Peninsula Energy on Monday announced a A$60-million equity raise to fund the restart of production at the Lance mine, in Wyoming – one of the biggest near-term uranium development projects in the US.
The placement would enable the company to progress preproduction construction works at Lance to achieve a production restart by late next year, the company said in a statement.
Peninsula will raise A$50-million through the issue of about 666.7-million placement shares at A$0.075 a share, and an additional A$10-million through a security purchase plan at the same price.
“Following the successful completion of the equity raising, Peninsula will be well capitalised to continue works at the Lance project and deliver on the timeline to production restart,” commented MD and CEO Wayne Heili.
He stressed that Lance would come online at an “opportune time”, well positioned to deliver into a growing, supply-constrained market.
Peninsula in August unveiled a new life-of-mine (LoM) plan for the Ross and Kendrick production areas at the Lance uranium project, having earlier flagged a significant delay in the restart of production.
The LoM features a 5 000 gallons per minute uranium in-situ recovery plant to produce two-million pounds a year of dry yellowcake product over an estimated production life of ten years, and a yellowcake LoM production of 14.8-million pounds.
Production in the first two years is planned to be solely from the Ross production area, with production from Kendrick planned to start in 2027.
The new LoM has estimated a capital cost of $285.8-million, with the remaining capital to first production estimated at $53.4-million. The updated financials estimate an LoM operating cash flow of $258.2-million before tax, and a net present value of $116.2-million with an internal rate of return of 26%.
The project’s all-in sustaining cost has been estimated at $42.46/lb.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation