Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has stocked up its war chest for the restart of the Lance Projects in the US uranium stronghold of Wyoming later this year as well as initial operations by completing a fully underwritten equity raising for total funds of A$105.9 million.
The final component of the raising was a A$39.8 million retail entitlement offer which attracted strong demand from existing shareholders at the offer price of A$0.10 per share.
Applications were received for around 171.2 million shares for approximately A$17.1 million in the retail offer with the A$22.7 million shortfall to be issued to the underwriters of the entitlement offer.
In strong position
Proceeds from the raising place the company in a strong financial position ahead of the planned operational restart at Lance in late quarter four of 2024.
They are also expected to fully fund operations at the Lance Projects through to sustainable free cash flow in the third quarter of 2025.
Peninsula’s non-executive chairman John Harrison said: “The board of Peninsula was very pleased to have been able to offer a sizable and properly proportioned entitlements offer to our large retail shareholder base, at the same terms as the previously announced placement and on a fully underwritten basis.
"We are also particularly pleased to have received a substantial A$17.1 million of further investment from those retail holders in response to that offer.
"These funds, along with the balance of the A$105.9 million fully underwritten equity raising announced on May 16, 2024, will allow the company to continue key development and construction work at full pace ahead of restarting operations in late 2024.”
About the raising
This retail entitlement offer follows the completion of a placement which raised approximately A$52.9 million and the institutional entitlement offer which raised approximately A$13.3 million of the total A$105.9 million equity raising, before costs.
The shortfall under the retail offer is about 227 million shares to raise approximately A$22.7 million. The total funds raised under the fully underwritten entitlement offer is approximately A$53.1 million, before costs.
New shares under the retail offer, including the shortfall shares, are expected to settle on Tuesday, June 11, 2024, with allotment and normal trading to commence on ASX on the same day.
New shares under the retail entitlement offer will rank equally with existing shares on issue once allotted.
Shaw and Partners Limited and Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited acted as joint lead managers and underwriters of the equity raising. In addition, Red Cloud Securities acted as co-manager, H.C. Wainwright & Co. acted as US financial advisor in respect of the equity raising, and BurnVoir Corporate Finance acted as financial advisor to the company.
Shaw and Partners Limited also acted as corporate advisor to the company in respect of the equity raising while A&O Shearman acted as legal advisor in respect of the raising.