Peninsula taps investors for $60m

Peninsula Energy is tapping investors for up to $60 million through a deeply-discounted placement to help fund the restart of its Lance uranium asset in Wyoming.

The Perth-based company told the market it had received binding commitments from investors to raise $50 million through an offer price of 7.5 cents apiece.

The placement price represents a 31.8 per cent discount to its five-day volume weighted average price as of November 15.

Peninsula has also launched a security purchase plan for eligible shareholders to raise up to $10 million at the same price for additional funds for the project.

The placement comes two weeks after Peninsula told the market it would need $US95 million ($A145 million) to reach sustainable positive cash flows from its US operation.

In an investor presentation early this month, the company said it was evaluating multiple options to raise these funds, including share issues, debt funding, product prepayments and inventory sales.

In today's ASX release, Peninsula said the funds would be used to progress construction works at the Lance project in the US towards production restart tipped for late 2024. 

It would add to the string of raisings undertaken in the past several years to help restart the project. 

Peninsula claims its flagship Lance asset is one of the largest uranium projects in size and scale in the United States. 

Managing director Wayne Heili said following the raises the company would be well capitalised to continue works at the Lance project to deliver on timeline to production restart.  

“Importantly, the critical role of uranium and nuclear energy continues to gain rapid momentum across the globe, due to the significant benefits as a 24/7, clean energy source,” he said in an ASX statement.

“Lance will come online at an opportune time and be well-positioned to deliver into a growing, supply constrained market.”