Peninsula Energy (ASX:PEN) completes AU$32M placement to resume Lance uranium projects

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 Peninsula Energy (ASX:PEN) completes AU$32M placement to resume Lance uranium projects
Image source: © Dwnld777 | Megapixl.com

Highlights

  • Peninsula Energy has completed a fully underwritten placement worth AU$32 million in a bid to restart uranium production operations at Lance Projects (Lance).
  • The company states that its Lance Projects, housed in Wyoming, USA, are among the largest uranium production development projects in the country.
  • Additionally, the company plans to launch a non-underwritten share purchase plan (SPP) with a target to raise up to AU$3 million.

ASX-listed uranium mining firm Peninsula Energy Limited (ASX:PEN) has completed an institutional placement to restart uranium production operations at Lance Projects. The company claims to have received substantial demand from high-quality national and international existing and new investors during the placement bookbuild.

As per the company, the placement will raise AU$32 million (before costs) through issue of about 244 million placement shares. The new shares will be made available at an offer price of AU$0.131 apiece, signifying a discount of 15.5% to the last closing price of 23 November 2022 (AU$0.155). The offer price also represents a 23.2% discount to the 20-day VWAP of AU$0.171, where VWAP refers to volume weighted average price.

Restarting operations at the Lance uranium projects

The company’s flagship Lance projects are among the largest uranium production development projects in the USA, highlights the company update.

Recently, Peninsula Energy announced the completion of a positive financial investment decision (FID) in order to resume uranium production operations at Lance.

Commenting on the development, the company’s Managing Director and CEO, Mr Wayne Heili, said:

© 2022 Kalkine Media®, image: Company update dated 24 November 2022

The company is also planning to roll out a share purchase plan (SPP) (non-underwritten) for its eligible shareholders from Australia and New Zealand. The target is to raise up to AU$3 million.

© 2022 Kalkine Media®, image: © Iqoncept | Megapixl.com

Share Purchase Plan

Upon completion of the placement with SPP, Peninsula Energy is expected to have ~1,265,852,194 shares on issue.

Below is an indicative SPP timeline:

 

 

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