Uranium-focused Peninsula Energy has launched a 51.6 per cent discounted capital raise in order to raise $69.9 million.
Peninsula Energy has announced plans to raise $69.9 million, as it continues to push for production success at its Lance uranium project in the US.
Friday’s update follows on from news earlier this month that George Bauk-led Peninsula had received approval to begin feeding phase two of its central processing plant.
As a result, this means Peninsula has been able to potentially begin processing uranium detected on resin at the plant. From the September quarter, it is hopeful of producing yellowcake.
Under the 51.6 per cent discounted capital raise, Peninsula said it would issue 232.9 million new fully paid ordinary shares at an issue price of 30 cents per share, to raise $21.9 million.
In addition, an accelerated non-renounceable entitlement offer, on a 1 to 1 basis, is tipped to raise $48 million.
Peninsula told the market it had already received a commitment that London-based Tees River would subscribe for up to $22.5 million – and following completion of the raise, could hold up to a 19.1 per cent stake in the company.
Last month, the company secured a $US15 million debt funding package in order to be able to facilitate the capital raise.
“This equity raise represents the final step in Peninsula’s comprehensive reset,” Mr Bauk said.
“It allows us to focus on the final commissioning of the CPP while optimising the performance of wells with production on-track to commence in the September quarter 2025.
“We thank our shareholders for their continued support during this transformative period.
“The financial and operational foundations are now in place to re-establish Peninsula as a key supplier of uranium to the US and global markets.
“With CPP construction now complete and production of dried yellowcake in sight, we are entering a new and exciting phase for the company.”
Peninsula also provided the market with revised production guidance targets at Lance, after production prior to Christmas last year was suspended due to multiple factors.
The uranium developer is now aiming to produce up to 50,000 pounds of uranium oxide for the remainder of CY25 and between 400,000-500,000 in CY26.
As a result of the revised targets, five of the company’s six offtake agreements have ceased.
Peninsula last traded at 62 cents.
