Ann: Placement at Premium - Cornerstone Investor , page-15

re: Ann: Placement at Premium - Cornerstone I... 16th December 2010
Companies Announcement Office
Via Electronic Lodgement
PLACEMENT AT PREMIUM TO CORNERSTONE
RESOURCES FUND AND OTHER INSTITUTIONS
Highlights
 A$31,600,000 raised at a 7.5c per share � 21% premium to 30 day VWAP
 A$21,600,000 of which is to be placed to Pala Investments
 A$10,000,000 of which is to be placed to international and domestic institutions
 A$100,000,000 Equity Facility provided by Pala Investments
Peninsula Energy Limited (Peninsula) (Company) is pleased to announce that it has entered into
agreements to raise up to A$31.6 million through a placement of A$21.6 million to specialist resources
fund Pala Investments Holdings Limited (Pala) and up to a further A$10 million to European, Asian and
Australian institutions.
Subscription Agreement and Equity Facility with Pala
Pala is a US$1 billion multi-strategy investment company dedicated to investing and creating value
across the mining sector in both developed and emerging markets. Pala�s exclusive investment advisor,
Pala Investments AG, has extensive experience within the mining sector. Under the terms of this
cornerstone investment, Peninsula has granted a Non-Executive Board seat to a nominee of Pala which
will provide the Company with strong support as it progresses through development.
Mr Michael Barton, Senior Vice President of Pala Investments AG, exclusive investment advisor to
Pala, said, �Pala is very excited about its investment in Peninsula and the ongoing development of the
Lance Uranium Project in Wyoming. We look forward to working with Peninsula to advance the Lance
Project through permitting and into development�.
Subscription Deed
Under the Subscription Deed executed with Pala, up to approximately A$21.6 million will be raised
pursuant to the placement of up to 288,317,976 ordinary shares to Pala at an issue price of 7.5 cents
per share, together with one free attaching listed option exercisable at 3 cents on or before 30 June
2012 (PENOA) for every two (2) new shares subscribed (Cornerstone Placement).
Of this Cornerstone Placement, 121,651,309 ordinary shares and 60,825,654 PENOA options are
subject to shareholder approval at a general meeting to be held as soon as practicable but no later than
60 days from the execution of this deed.
Equity Facility
In addition to the Cornerstone Placement, Peninsula has secured a A$100m Equity Facility with Pala
(Equity Facility). This facility will add considerably to Peninsula�s funding flexibility, maximization of the
debt component of future financings and will add to the likelihood of more favourable terms going
forward.
Under the Equity Facility, Peninsula may, at its discretion, over a period of 5 years, draw down on this
facility in part or whole, subject to Pala�s approval of the use of funds. Shares issued to Pala as
Peninsula Energy Limited -2-
Level 1, 477 Hay Street, Subiaco WA 6008, PO Box 8129, Subiaco East WA 6008
Phone: +61 (0)8 9380 9920 Fax: +61 (0)8 9381 5064
Peninsula Energy Limited - ABN: 67 062 409 303
consideration for draw down will be priced at the Company�s 20 day volume weighted average price
(VWAP) prior to the draw date and will include one attaching two year option with a strike price 20%
above the share price for every two drawdown shares issued.
In consideration for providing the Equity Facility, Pala will receive a fee equivalent to 1.20% of the
facility annually in the form of PENOC options (based on 30 day VWAP calculation) in staged tranches;
47% of the options to be issued upon execution of the Equity Facility agreement and 13.3% on each of
the four following anniversaries.
Institutional Placement
In addition to the Cornerstone Placement to Pala, the Company will raise up to a further A$10 million
pursuant to the placement of 133,333,334 ordinary shares at an issue price of 7.5 cents per share,
together with one free attaching listed (PENOA) option exercisable at 3 cents on or before 30 June
2012 for every two (2) new shares subscribed to institutions in Australia, Asia and Europe (Institutional
Placement). The Institutional Placement will be made pursuant to Peninsula�s ASX Listing Rule 7.1
capacity.
Hartleys Limited and BGF Equities acted as brokers and lead managers to the Institutional Placement.
The issue price of both the Cornerstone Placement and the Institutional Placement represents a
premium of 21% to the 30 day VWAP price (as at 14 December 2010) of Peninsula shares on the ASX.
The funds raised pursuant to the Cornerstone Placement and Institutional Placement will be used to
fund the development and exploration of Peninsula�s uranium projects including:
� Resource exploration and delineation drilling at the Lance Projects in Wyoming, USA;
� Drilling of disposal wells at the Lance Projects;
� Completion of the feasibility study at the Lance Projects; and
� Drilling and scoping studies at the Karoo Projects in South Africa.
Commenting on the success of the capital raising, Peninsula Executive Chairman Gus Simpson said
�Peninsula is very happy to receive Pala as a cornerstone investor as it brings a strong understanding
of the resources industry, extensive experience in project financing and a commitment to the long term
development of the companies it invests in. The financial metrics of the transaction are attractive to all
parties and a good working relationship has already been established�.
This is the announcement that was referred to in the Company�s request for a trading halt on
14 December 2010.