Uranium explorer Peninsula Energy has announced it will raise $105.9 million in a bid to generate sustainable free cash flow and enhance activities at its US-based Lance project.
Uranium explorer Peninsula Energy has announced it will raise $105.9 million in a bid to generate sustainable free cash flow in the third quarter of the 2025 financial year and enhance activities at its US-based Lance project.
Peninsula’s capital raising comes at a time where Australia-based companies with uranium assets in the US appear to have an opportunity to capitalise on recent political announcements by the Biden administration.
On May 1, the US Senate unanimously approved a bipartisan bill to ban all uranium imports from Russia by 2028. Earlier this week, this was signed into law by US President Joe Biden.
Both of these events resulted in a number of US-focused companies, including Aurora Energy Metals, ending trade with positive gains.
Peninsula told the market it would raise $52.9 million courtesy of an institutional placement at an issue price of 10 cents per share.
The issue price represents a 13 per cent discount to the company’s closing price on May 15 and a 13.6 per cent discount to the 10-day volume weighted average price of 11.6 cents per share, up to and including the same date.
In addition, Wayne Heili-led Peninsula will undertake a $53 million one for four accelerated non-renounceable entitlement offer.
A Peninsula spokesperson confirmed to Business News that Canaccord Genuity and Shaw and Partners acted as joint lead managers for the fully underwritten placement.
Peninsula also rattled the tin last November, tapping investors for $60 million, which included a 31.8 per cent discounted placement.
Two weeks prior to this, the uranium explorer said it needed $US95 million to reach sustainable positive cash flows for its operation at Lance, which is located in the American state of Wyoming.
“We continue to be buoyed by the support of existing and new shareholders to back the Lance project,” Mr Heili said.
“Lance is one of the largest uranium projects in the US, and with production at Lance scheduled to recommence in late 2024, we are well positioned to become a near-term, long-life, independent uranium producer.
“The work at Lance is continuing at full pace and we remain on track for commissioning later this year.”
Peninsula posted a net loss after tax of $US8.4 million in the first six months of the 2024 financial year, up from $US2.6 million during the prior corresponding period.
On April 9, Willie Bezuidenhout was also appointed interim chief financial officer, following the departure of Rachel Rees, with Mr Heili confident his experience would be an asset to Peninsula during his tenure.
Peninsula last traded at 12 cents per share.
