Peninsula Energy completes $40.3 million entitlement offer to advance Lance Uranium Project

Peninsula Energy Ltd (ASX:PEN) has confirmed a 40.87% take up for its entitlement offer to raise $40.3 million from shareholders at 7.1 cents per share. The shortfall shares will be taken up in full by the underwriter Canaccord Genuity and sub-underwriters. In accordance with the terms of the underwriting agreement, the issue and allotment of new shares under the entitlement offer will be made on June 30, 2020. The trading of new shares on ASX is expected to commence on July 1, 2020. Use of funds The new funds will support the transformation of Peninsula’s flagship Lance Uranium Project in Wyoming, USA. These funds, together with proceeds from the sale of uranium and existing cash reserves will be used for the following purposes through to early 2022: Repayment in full of the existing term debt that has a current face value of US$16.821 million, with the payment to be made promptly upon completion of the Entitlement Offer, Payment of interest accrued under the term debt facility from the period of 1 April 2020 through to the date of debt repayment, General working capital purposes including progression of the low pH de-risking and optimisation activities, which include additional column leach testing and operation of the new low pH field demonstration, and Early preparation activities for the planned transition to low pH operations, including deep disposal well modifications, process plant modifications and wellfield conversion.