Peninsula Energy (ASX: PEN) has announced a settlement agreement with Samuel EPC, resolving all outstanding claims related to the construction of Phase II of the Central Processing Plant (CPP) at the Lance Project in Wyoming. The settlement includes US$2 million in cash, US$2 million in equity (subject to shareholder approval and a six-month escrow), and a US$0.75 million cash milestone payment upon successful dry yellowcake production by June 30, 2025. The total settlement is valued at US$4.75 million.
Concurrently, Peninsula Energy is undergoing a reset plan, including revising production guidance for CY26 and CY27, which is expected to be lower than previous expectations. The company is in discussions for interim debt funding and plans a capital raise to support the implementation of the reset plan. As of May 31, 2025, Peninsula held a cash balance of US$13 million and had no corporate or project finance debt.
Negotiations are ongoing with offtake customers regarding amendments to sales contracts, crucial for the reset plan’s viability. Operationally, David Hofeling has been appointed General Manager of Operations, while Frederic Guerin, Chief Operating Officer, will step down in July. Organizational changes at the Lance Project have included personnel reductions to improve operating efficiency.
Corrosion was identified in piping within Phase 1 of the CPP during a routine inspection, with a solution expected in Q3 CY2025. A temporary system will be installed to minimize production disruption.
The company’s shares remain suspended as it finalizes sales contracts, production guidance, and associated financial plans. The announcements clarify that this update is separate from the trading halt requested on April 17, 2025, and the suspension notice on April 23, 2025. Peninsula aims to bring Lance back into production and become a key uranium supplier.
