Peninsula Energy Limited (ASX: PEN), the only ASX-listed uranium company providing US production and direct market exposure, has announced a fully underwritten A$69.9 million equity raising. The funds will be used to drive the reset production plan and ramp-up of operations at its Lance Project in Wyoming. The equity raising comprises a two-tranche institutional placement of approximately A$21.9 million and a A$48.0 million 1-for-1 accelerated non-renounceable entitlement offer. The offer is priced at A$0.30 per share, a 51.6% discount to the last traded price of A$0.62.
Davidson Kempner Capital Management (DK) will subscribe for up to US$3 million in the equity raise, offset against its existing debt facility. Tees River Uranium Fund Limited will become a cornerstone investor with a firm commitment of up to A$22.5 million. Directors David Coyne, George Bauk, and Brian Booth have committed to subscribing for A$231,000 of shares, subject to shareholder approval at an Extraordinary General Meeting (EGM) expected on or before 30 September 2025. Proceeds will fund final payments for the Central Processing Plant (CPP), wellfield development, sales contract termination, exploration studies, and working capital.
The company has updated its production guidance following a full re-evaluation of its near-term production schedule. The focus is now on commissioning in CY2025 and ramp-up in CY2026, with revised operating parameters and a ramp-up profile. No sales commitments will be made during the reset plan and ramp-up period, expected to conclude by the end of CY2027. Revised production guidance includes up to 50,000 lbs U3O8 in CY2025, 400,000 to 500,000 lbs in CY2026, and 500,000 to 600,000 lbs in CY2027.
George Bauk, Peninsula Energy’s Managing Director and CEO, stated that the funding and reset of Lance provide a platform to achieve sustainable production, particularly given strong global tailwinds for uranium. The company has terminated five of six offtake contracts, subject to a US$5 million payment, to align delivery obligations with the updated production guidance. The equity raise is fully underwritten by Canaccord Genuity (Australia) Limited and Shaw and Partners Limited.
