Peninsula Energy Limited (ASX: PEN), an Australian-based uranium mining company focused on developing its Lance Project in Wyoming, USA, utilizing in-situ recovery (ISR) methods, has announced a comprehensive capital raising initiative. This includes a fully underwritten equity raising and a senior secured convertible note facility, aiming to secure approximately A$72.3 million in new funding. The substantial capital injection is primarily designed to accelerate development at its Lance Project in Wyoming, USA, and strengthen its financial position for ongoing operational activities.
The A$36.07 million (before costs) equity raising comprises a pro-rata accelerated non-renounceable entitlement offer and a placement. Eligible shareholders are invited to subscribe for one new share for every 11 shares held at an offer price of A$0.35 per New Share, seeking to raise approximately A$14.23 million. Concurrently, a placement of 62,400,844 new shares, also priced at A$0.35 each, is expected to raise approximately A$21.84 million. This offer price represents a 10.3% discount to Peninsula’s last closing share price of A$0.39. Canaccord and Shaw and Partners are jointly leading and underwriting the equity raise.
Underpinning this capital raise is a US$30 million senior secured convertible note facility from SP Financing 1 Pty Limited, an affiliate of Washington H. Soul Pattinson and Company Limited. This facility includes a pre-commitment of approximately A$14.4 million in equity from Soul Patts. The combined funds will be used to accelerate the development of Mine Unit 5 (MU-5) at the Lance Project, marking the first stage of Peninsula’s Horizon 3 growth strategy. Funds are also allocated for constructing a new deep disposal well and covering general working capital and corporate costs.
The decision to undertake this financing is supported by encouraging uranium head grade results from Header House 14 and improving acidification performance across Header House 14 and 16 at Mine Unit 4. While initial low pH operations were affected by gas build-up, operational adjustments implemented by the site team have recently delivered improvements in flowrates, providing increased confidence in the technical aspects of low pH leaching chemistry at the Lance Project.
