Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has kicked off a share purchase plan (SPP) capital raise to generate $3 million in funds, intended to support the development of the company’s Lance in-situ recovery (ISR) uranium projects.
Peninsula is offering up to $30,000 worth of shares at a price of $0.131 each to eligible shareholders, representing a 20% discount to the five-day volume weighted average price (VWAP).
The SPP follows on from the first portion of this capital raise – a share placement intended to raise $32 million for a total of $35 million in funds.
Read: Peninsula Energy raises $32M to restart Lance Uranium Project
Use of funds
Peninsula will use the additional $35 million to:
- complete the ongoing works program of transitioning the Lance Projects to the low-pH ISR process;
- to restart production operations within the Ross Production Area; and
- to advance the Kendrick Production Area.
“We are delighted with the strong support we have received for the placement, and I would like to thank our existing and new institutional investors for their support,” Peninsula managing director and CEO Wayne Heili said last week.
“The placement is an important catalyst for the company following the board making a positive FID to restart uranium production operations at the company’s flagship Lance projects.”