Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has secured binding commitments to raise A$50 million via a placement to global institutional and sophisticated investors at $0.075 per share to fund continuing construction works and wellfield development to restart uranium production at the Lance Project in Wyoming, USA.
In addition, the company is also undertaking a security purchase plan (SPP) to raise up to A$10 million, providing existing eligible shareholders the opportunity to participate in the capital raising on the same terms as the placement.
The participants in the placement and SPP will receive one free unlisted attaching option for every two new shares allocated, exercisable at A$0.10 per share.
Looking ahead, on achieving a steady state of production at Lance targeted for late 2024, Peninsula will be the largest US-based fully independent, end-to-end producer of dry yellowcake.
Commercial production in late 2024
Peninsula managing director and CEO Wayne Heili said: “We are pleased to receive such significant support from many existing and new, high-quality institutional and sophisticated investors, providing us with a large amount of equity to allow completion of plant construction and commencement of commercial production at Lance in late 2024.”
“Following the successful completion of the equity raising, Peninsula will be well capitalised to continue works at the Lance Project and deliver on the timeline to production restart.
“Importantly, the critical role of uranium and nuclear energy continues to gain rapid momentum across the globe, due to the significant benefits as a 24/7, clean energy source.
“Lance will come online at an opportune time and be well-positioned to deliver into a growing, supply-constrained market.”
Placement summary
Peninsula’s placement will raise A$50 million through the issue of approximately 666.7 million shares at an offer price of A$0.075 per share, together with one free attaching option for every two placement shares.
The placement will be completed in one tranche and is conditional upon receipt of shareholder approval at an Extraordinary General Meeting to be held on or around January 10, 2024.
The price of $0.075 per share represents a 31.8% discount to the 5-day VWAP on November 15, 2023.
SPP summary
The SPP is expected to be open to all Peninsula Energy shareholders as of 5.00 pm (WST) on the record date of Friday, November 17, 2023, whose registered address is in Australia or New Zealand.
Eligible holders will be invited to invest up to A$30,000 per shareholder, subject to any scaleback.
Further, eligible holders can invest up to A$20,000 per shareholder by exercise of the attached options.
Under the SPP, Peninsula shares will be offered at the same issue price as the placement of $0.075 per share, together with one free unlisted attaching option for every two SPP shares allotted on the same terms as the attaching options.
The SPP will be conditional upon receipt of approval of the placement and the SPP from the company’s shareholders at the EGM.