Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has received strong demand and support from new and existing global institutional and sophisticated investors as part of its $105.9 million equity raising that will fully fund operations at the flagship Lance Projects to sustainable free cash flow in Q3 2025.
The company has now completed its fully underwritten institutional placement for $52.9 million and the institutional component of the fully underwritten 1-for-4 accelerated non-renounceable entitlement offer for $13.3 million.
A$39.8 million fully underwritten retail entitlement offer to existing eligible retail shareholders will conclude the equity raising and this will open on Thursday, May 23, 2024.
"Very strong financial position"
Peninsula managing director and CEO Wayne Heili said: “We are extremely pleased to complete the institutional component of this fully underwritten and strongly supported equity raising, which is designed to fully fund the company to positive free cash flow generation in Q3 2025.
“The results place Peninsula in a very strong financial position and allow the company to continue key development and construction work at full pace ahead of restarting operations in late 2024.
“The level of demand and support for this placement was significant and we received interest well above our targeted amount, which highlights the exciting future of the company and our Lance Projects.
“I would like to welcome our new institutional investors to the register and I extend my great appreciation to our existing institutional shareholders for their support both through this raise and more importantly, over the last 12 months.
"I am very excited for the coming months as Peninsula transitions back into producer status."
Retail entitlement offer
The fully underwritten A$105.9 million raise is comprised of an:
- A$52.9 million placement (now completed);
- A$13.3 million accelerated institutional entitlement offer (now completed) and;
- A$39.8 million fully underwritten retail entitlement offer to existing eligible retail shareholders.
The retail entitlement offer, which opens this Thursday, is expected to close at 5.00pm (AEST) on Monday, June 3, 2024.
This equity raising is being conducted at a fixed offer price of A$0.10 per share, representing a 13% discount to the last closing price of A$0.115 per share on May 15, 2024; a 13.6% discount to the 10-day VWAP of A$0.116 per share up to and including May 15, 2024; and a 10.7% discount to the theoretical ex-rights price (TERP) of A$0.112 per share
“The company is also very pleased to offer a sizable and properly proportioned entitlement offer in respect and appreciation for our large retail shareholder base.
"The fully underwritten retail entitlement offer will launch this week and will allow existing retail shareholders to participate in the equity raising at the same offer price as the placement,” said Heili.
Timing couldn’t be better
Completion of the equity raising will place Peninsula in a strong financial position to complete key development and construction activities at Lance at full pace, ahead of the restart of uranium operations late in the fourth quarter of this year..
Once in operation, Peninsula will be in a strong position to capitalise on the increasingly tight uranium market, forecast growth in demand and rising uranium prices.
“The timing of Lance coming back online couldn’t be better. The recent ban of imported enriched uranium from Russia being signed into law by President Biden highlights the strategic importance of emerging North American uranium producers like Peninsula.
"Our company is in a very strong position to become a key supplier and to benefit from this growing market,” added Heili.