Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) will raise $32 million following the completion of an institutional placement of new fully paid ordinary shares in the company.
The company will issue approximately 244 million placement shares at an offer price of A$0.131 per share. The offer represents a discount of 15.5% to the last ASX closing price of Peninsula shares on November 23, 2022, of A$0.155 and a 23.2% discount to the 20-day VWAP of A$0.171 to the same date.
There was significant demand for shares from high-quality existing and new sophisticated and institutional investors in Australia and internationally.
Further to the placement, Peninsula intends to launch a non-underwritten share purchase plan (SPP) to raise up to a maximum of A$3 million. New shares issued under the SPP will be offered at the placement price of A$0.131 per share.
As the company remains debt free and retains a uranium inventory currently valued at US$15.5 million (~310,000 pounds of uranium in converter accounts, with a current spot market value of US$15.5 million, at US$50.00 per pound U3O8), it has the financial flexibility for the funding to go towards operational expansion and other activities.
Use of funds
The money raised will be used 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
- the advancement of 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.
“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.”
The placement shares subscribed for under the placement are expected to settle on December 1, 2022, with allotment and normal trading on ASX expected to commence on December 2, 2022.
About Peninsula
Peninsula Energy commenced in-situ recovery operations in 2015 at its 100% owned Lance Projects in Wyoming, USA. The company is embarking on a project transformation initiative at the Lance Projects to change from an alkaline ISR operation to a low pH ISR operation with the aim of aligning the operating performance and cost profile of the project with industry leading global uranium production projects.
