Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has completed its share purchase plan (SPP) to eligible shareholders and has raised a total of A$1 million.
The SPP, announced on November 24, 2022, followed a fully underwritten institutional placement with Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited of new fully paid ordinary shares to raise A$32 million.
Use of funds
Peninsula has made the decision to restart its 100%-owned Lance Projects in Wyoming, USA. This is the final step in a project transformation initiative at Lance to transition from an alkaline ISR operation to a low pH ISR operation.
Lance is one of the largest uranium development projects in the United States and once in production Peninsula will be in strong position to supply a growing market, as the importance of nuclear power continues to gain momentum and support, as a critical part of the green energy mix.
Money raised from the placement and SPP will go towards:
- completion of the ongoing works program to transition PEN’s flagship Lance Projects into a low-pH ISR process;
- to restart production operations within the Ross Production Area; and
- the advancement of the Kendrick Production Area.
The SPP was offered at the placement price of A$0.131 per share and sought to raise up to a maximum of A$3 million, by allowing eligible shareholders to each subscribe for up to A$30,000 worth of new ordinary shares.
The SPP closed on Friday, December 16, 2022, and shares will be issued to applicants on December 21, 2022. The SPP shares will commence trading on December 22, 2022