Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) is offering eligible shareholders the opportunity to participate in a share purchase plan (SPP) on the same terms as the recently completed placement to institutional and sophisticated investors.
The company is targeting to raise up to A$10 million in the SPP.
Funds raised from the SPP together with the A$50 million placement funds raised from global institutional and sophisticated investors will be used to advance the 100%-owned Lance Projects in Wyoming — one of the USA's largest uranium projects.
This SPP, together with the share placement, will leave Peninsula well-placed to restart production at Lance and contribute significantly to enhancing overall value for shareholders.
Under the SPP eligible shareholders in Australia and New Zealand have the opportunity to acquire up to A$30,000 worth of ordinary shares in the company at an issue price of A$0.075, together with one free attaching option for every two SPP shares, exercisable at A$0.10 and expiring on March 31, 2025.
"A strong financial position"
As explained in Peninsula CEO and managing director Wayne Heili’s December letter to shareholders, the completion of the placement and SPP positions Peninsula in a strong financial position to continue key development and construction activities at Lance in advance of commencing production activities.
The funds raised will be used to fund continuing construction works and wellfield development to restart production at the Lance Project in accordance with the revised Life of Mine Plan.
The SPP offer opens today, January 10, 2024, and is expected to close at 5.00pm (AWST) on Wednesday, January 24, 2024.
To participate in the SPP, eligible shareholders may apply for shares in the amount of A$1,000, A$2,500, A$5,000, A$7,500, A$10,000, A$12,500, A$15,000, A$20,000, A$25,000 or A$30,000 (subject to scale back).
Participation in the SPP is optional and is open to eligible shareholders who are holders of shares at 5:00pm (AWST) on Friday, November 17, 2023, with a registered address on the register in Australia or New Zealand who are not in the United States.