Peninsula secures $15m for US uranium project expansion
PERTH (miningweekly.com) – Uranium junior Peninsula Energy has secured $15-million in funding through convertible loan agreements with shareholders Resources Capital Fund VI (RCF VI) and Pala Investments to fund the expansion of its Lance project, in the US.
The company said on Tuesday that the $15-million funding was the first component of a broader funding package which would also include a revenue streaming facility, for which a term sheet had been signed and due diligence was currently under way.
The convertible loan would comprise a $9.63-million loan from RCF VI and a $5.37-million loan by Pala, with the lenders having the ability to convert all or part of the loan into fully paid ordinary shares at a conversion price of 80c a share.
The convertible loans would bear an interest of 8% a year, payable in quarterly arrears in either cash or shares. The maturity date of the convertible loan was April 2017.
Meanwhile, the revenue streaming facility would be a nondilutive mechanism that would see a proportion of the future uranium sales revenue, over a finite period of time and finite quantity of production, being exchanged for a one-off upfront cash payment that would also be used for development or expansion capital.
Peninsula said it had received several proposals and had executed one nonbinding term sheet for a revenue streaming facility, with the due diligence on this facility now well advanced.
“Peninsula is pleased to have secured this funding as it enables the company to accelerate development activity at the Lance project and move to the next production phase, which is aimed at generating an increased operating margin and subsequent financial sustainability,” said MD and CEO Gus Simpson.
The Lance project delivered its first uranium in January this year.
Under the first stage of development, Lance would produce between 500 000 lb and 700 000 lb of uranium oxide (U3O8) a year. Production would increase to 1.2-million pounds a year of U3O8 in the second stage of development.
Stage 3 development would further increase production to 2.3-million pounds a year of U3O8.
Peninsula pointed out that the Stage 2 expansion would see the termination of a toll milling agreement currently in place at Lance, bringing these functions in-house.
When combined with the cost benefits of increased production and economies of scale, all-in sustaining costs at Lance were expected to reduce by between $9/lb and $10/lb of U3O8, to between $31/lb and $32/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