Peninsula Energy Advances Lance Project Reset Amid Key Contract Revisions

June 16, 2025 02:27 PM AEST | By Team Kalkine Media

Peninsula Energy Advances Lance Project Reset Amid Key Contract Revisions — Image source: shutterstock

Phase II Construction Nears Completion at Central Processing Plant

Peninsula is in the final stages of Phase II construction at the Central Processing Plant. The commissioning phase is expected to commence soon, signaling substantial progress in operational readiness. The ongoing developments reflect a structured and methodical approach to rebuilding project infrastructure under a revised production plan.

With the completion of this phase, Peninsula anticipates readiness for hot commissioning. The company’s management has highlighted that internal teams remain focused on maintaining strong execution across critical workstreams to ensure a stable foundation for long-term operational viability.

Uranium Sales Contracts Terminated Under Reset Plan

As part of the broader reset plan, Peninsula has ended multiple uranium yellowcake sales contracts through mutual agreement with major global power utility customers. These agreements collectively represented multi-year obligations. According to company announcements, these terminations are directly tied to past project delays and a need to synchronize commercial commitments with the adjusted production timeline.

The revised arrangement eliminates liabilities tied to previously contracted deliveries and relieves the company of associated take-or-pay clauses. Consequently, Peninsula now becomes fully exposed to market-driven pricing dynamics for uranium moving forward.

The company has also confirmed ongoing discussions with the remaining customers, aiming to re-engage after establishing a reliable and consistent production track record from the Lance Project.

EPC Contractor Dispute Settled to Maintain Construction Momentum

In another significant move, Peninsula has resolved a contractual dispute with its engineering, procurement, and construction partner, Samuel EPC. The settlement agreement has allowed construction activities to resume without interruption. The EPC contractor is actively continuing Phase II development, with handover milestones set to begin shortly.

Peninsula’s leadership has emphasized that the settlement aligns with the company’s deliberate execution strategy, aiming to prevent further project disruption and preserve construction timelines.

Funding Discussions Underway with Interested Partners

The company has revealed it is engaged in advanced-level discussions with prospective short-term debt providers to support the remaining stages of project execution. Several funding partners have completed due diligence processes, and finalization of financial support is anticipated in the near term.

This financing initiative is intended to reinforce Peninsula’s cash position as it nears the culmination of its reset efforts. Leadership has reiterated the company's commitment to establishing a reliable production framework that will underpin long-term supply agreements and stakeholder confidence.

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