Peninsula Energy raises $32 million to restart uranium project

ASX-listed U.S. uranium explorer Peninsula Energy Limited tipped the hat Thursday morning to $32 million to restart its Lance project.

Peninsula Energy has halted work on its Lance uranium project in the US to switch to a low-pH process that the company says will reduce operating costs.

The offer was structured as a fully guaranteed placement and priced at 13.1ยข per share, a discount of 15.5 percent until final close and 23.3 percent lower than the 15-day volume-weighted average price. The company had plans for a $3 million share purchase plan after the placement.

The term sheet sent to potential investors stated that Peninsula would use the proceeds to complete works to transition its wholly owned Lance project in Wyoming to a low pH in-situ remediation (ISR) process, the believes it will reduce operating costs and improve production efficiency.

The raise would also fund the restart of production in the Ross area, advance the Kendrick production area with drilling aimed at improving resources, working capital and offer costs.

The field said Lance was the only US-based uranium project authorized to use the low pH process and was one of the largest defined uranium resources in the country with 53.7 million pounds of uranium oxide.

Canccord Genuity was the lead manager and underwriter, while Research Capital Corporation was the co-manager.

Peninsula had a market capitalization of $154.8 million prior to the offer.

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