Peninsula Energy (ASX: PEN), an Australian-based uranium mining company with operations in Wyoming, USA, is undertaking a A$69.9 million equity raising to fund the restart of its Lance Project. Peninsula Energy is focused on transitioning its Lance Project to a low-pH in-situ recovery operation. The company aims to become a fully independent, end-to-end producer of dry yellowcake.
The equity raising comprises a pro-rata accelerated non-renounceable entitlement offer to raise A$48.0 million and a two-tranche placement to raise approximately A$21.9 million. The entitlement offer is fully underwritten by Canaccord and Shaw, who are also joint lead managers and joint bookrunners for the deal. The offer price for both the entitlement offer and placement is A$0.30 per new share. Tees River Uranium Fund has pre-committed to subscribe for A$22.5 million of the equity raising.
The proceeds from the equity raising, along with existing cash reserves and debt financing, will be used to commence the ramp-up of production at the Lance Project. Funds will also advance wellfield development within Mine Unit 4 and commence activities aimed at reducing the risk associated with future wellfield development at the Kendrick and Dagger projects. A portion of the funds will be allocated to fund termination payments under sales contracts.
The company expects to complete commissioning of the Central Processing Plant during the September 2025 quarter and ramp-up activities through 2026. The retail entitlement offer is scheduled to open on 29 August 2025 and close on 9 September 2025.
