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Energy|Nuclear|PROJECT
Energy|Nuclear|PROJECT
energy|nuclear|project

Peninsula set to raise A$40.3m

4th June 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Uranium developer Peninsula Energy will raise A$40.3-million in a fully underwritten renounceable entitlement offer to repay its existing term debt.

Eligible shareholders would be allowed to subscribe for nine new shares in Peninsula for every five shares held, at an issue price of 7.1c a share.

The entitlement offer represents a 45.4% discount to Peninsula’s last closing price on May 28.

“This equity raising will put us in the strongest position we have been in for years; debt free, cash in the bank, cashflow from our  uranium contract book and holding a developed uranium production project, which we are optimising, ready to hit the go button when the market fundamentals are right,” said Peninsula MD and CEO Wayne Heili.

The equity raise will see Peninsula repay its $16.8-million corporate debt balance, and would allow the company to pursue its uranium production strategy at its Lance project, in Wyoming.

Peninsula is also expected to save some $2-million annually in interest payments while retaining the full value of its long-term uranium concentrate sale and purchase agreements, which would generate between $6-million and $8-million a year in 2021 and 2022, based on the current uranium spot price.

“We will be in an excellent position to not only capitalise on continued improvements in the global uranium market, but specifically in the US. Recent policy framework recommendations by the US Nuclear Fuel Working Group are expected to materially benefit US uranium mines, including our Lance project, which has the biggest resource of any recently-producing US project and is the only one authorized to use low pH in-situ recovery,” said Heili.

Edited by Creamer Media Reporter

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