Peninsula Energy Limited (ASX:PEN) has announced it has secured debt financing of up to US$15 million with Davidson Kempner, a global investment management firm. Peninsula Energy is an ASX-listed uranium company providing US production and direct market exposure. Its 100% owned Lance Projects in Wyoming has re-commenced uranium recovery from wellfields and will continue ramping up production. The funding will support continued development and commissioning work at the company’s flagship Lance Project in Wyoming, while also progressing an equity capital raising.
The US$15 million debt financing comprises a US$10 million cash advance facility and a US$5 million convertible debt facility. The company intends to draw down the US$10 million cash advance immediately, subject to customary conditions. The US$5 million convertible debt facility is subject to shareholder approval and completion of an equity capital raising. Subject to shareholder approval, up to US$10 million of the cash advance facility will be refinanced by a convertible debt facility.
Peninsula anticipates producing dry yellowcake before the end of August 2025, pending completion of outstanding items, water commissioning, standard form pre-operational Wyoming Uranium Recovery Program (URP) approval, and successful hot commissioning. The company continues to finalize various matters, including the reset of the sales contract book, production guidance, and financial plans required to launch an anticipated equity raise.
Managing Director and CEO George Bauk expressed satisfaction with securing the debt financing, stating that it ensures the company can continue to methodically deliver on its development and commissioning program at Lance and strengthen its cash position while progressing an equity capital raising. The company’s shares will remain in suspension until these matters are finalized.
