Peninsula sells contract for $US19m

Peninsula Energy has signed an agreement to sell a portion of its interests in an existing long-term uranium sale and purchase deal for $US19 million ($23.7 million).

Under the agreement, Peninsula has sold a portion of its delivery commitments under two existing uranium concentrate sale and purchase agreements.

The sale is worth about 935,000 pounds of uranium concentrate, with delivery commitments scheduled between 2018 and 2021.

As part of the agreement, Peninsula has also sold its entire interest in an agreement to purchase 900,000 ounces of uranium.

Peninsula managing director Wayne Heili welcomed the new agreement.  

“Today we have greatly enhanced our current financial position by accelerating some of the income potential contained in that portfolio,” Mr Heili said

“This non-dilutive cash infusion should allow the company to comfortably advance our production improvement initiatives at the Lance projects.”

Following completion of the contract sale, Peninsula has up to 6.6 million pounds of uranium remaining under contract for delivery between 2018 and 2030 with its customers in North America and Europe.