Uranium developer Peninsula secures $15m from Investec
PERTH (miningweekly.com) – Uranium developer Peninsula Energy has secured a $15-million finance facility from Investec Bank to cover inventory and general costs while production and revenue from the Lance uranium project, in the US, ramped up.
ASX-listed Peninsula said on Monday that the inventory finance facility was agreed with Investec following discussions with a number of other financial service providers.
The facility would have a two-year secured term, with $7.5-million drawable against uranium inventory delivered to uranium conversion facilities. A further $7.5-million revolving loan facility would be repayable at Peninsula’s discretion.
At the current London inter-bank offer rate, the facility would have an all-in interest rate of less than 6% a year, over the 24-month term, and would have a yearly line fee of 2%, and a one-off establishment fee of 1.5%.
“We are pleased to secure this facility with Investec. The facility provides Peninsula with short-term funding flexibility as production at Lance ramps up, which is particularly important given the often lumpy nature of uranium deliveries and associated cash receipts,” said Peninsula MD and CEO Gus Simpson.
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.
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