Peninsula Energy (ASX:PEN) has raised $69.9 million in equity, the energy producer confirmed today, with the cash to now be aimed at fast-tracking the reset and ramp-up of its Lance Project in Wyoming.
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This funding push includes a two-tranche institutional placement worth around $21.9M and a $48M accelerated non-renounceable entitlement offer priced at 30cps; a notable 51.6% discount to its last traded price, 62cps.
Big players are backing the raise: Davidson Kempner Capital Management will convert US$3 million of existing debt into equity, and Tees River Uranium Fund Limited is coming in as a cornerstone investor, committing up to A$22.5 million.
“The funding and reset of Lance provide a platform to achieve sustainable production, particularly given strong global tailwinds for uranium,” Peninsula’s CEO, George Bauk, said.
Directors are putting their money where their mouth is, too, with David Coyne, George Bauk, and Brian Booth having committed to subscribe for $231,000 worth of shares, pending shareholder approval.
Peninsula has completely re-evaluated its production strategy and laid out new guidance. The reset plan focuses on commissioning in CY25, with ramp-up throughout CY26, and reaching stable production by CY27.
Here’s the roadmap shared by the producer:
- Up to 50,000 lbs U3O8 in CY2025
- 400,000 to 500,000 lbs in CY2026
- 500,000 to 600,000 lbs in CY2027
To support this plan, the company has terminated five of its six offtake contracts for US$5 million, giving them flexibility during the ramp-up phase with no delivery obligations through to the end of CY27.
Proceeds will go toward key project components, including final CPP payments, wellfield development, exploration, and working capital.
Fully underwritten by Canaccord Genuity and Shaw and Partners, this raise positions Peninsula to ride the growing uranium wave.
PEN has been suspended at 62cps.
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