Peninsula set to raise A$40.3m
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.
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