29/11/2019 - 13:16

Uranium, gold explorers to raise $14m

29/11/2019 - 13:16

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Uranium explorer Peninsula Energy is planning a $9.1 million capital raising to fund costs associated with its mines in the US, while De Grey Mining is planning to raise $5 million to fund exploration activities at its Mallina gold project, near Port Hedland.

Uranium, gold explorers to raise $14m
Peninsula says the proceeds will be used for operational costs at its Lance projects in Wyoming.

Uranium explorer Peninsula Energy is planning a $9.1 million capital raising to fund costs associated with its mines in the US, while De Grey Mining is planning to raise $5 million to fund exploration activities at its Mallina gold project, near Port Hedland.

Peninsula said it would raise $7 million through the placement of approximately 42 million shares, issued at 16.5 cents per share.

It is looking to raise a further $2.1 million through a rights issue of 12.65 million shares on the same terms as the placement.

Euroz and Canaccord Genuity (Australia) will act as joint lead managers to both offers.

Peninsula said the proceeds would be used for ongoing site operational costs and low pH de-risking and optimisation activities at its Lance uranium projects in Wyoming.

It said the funds would also be used to purchase uranium for delivery to customers under existing contracts and for debt servicing costs.

Peninsula managing director Wayne Heili said the capital raising supports the company’s transition to low pH operations.

“We feel this placement and entitlement offer is an attractive value proposition for both new and existing shareholders, particularly with the near-term positive catalysts that could come through the US President’s implementation of the U.S. Nuclear Fuel Working Group’s recommendations,” Mr Heili said.

“Peninsula’s efforts to prepare the Lance project for low pH ISR production operations and to strengthen our financial position are both forward-thinking and timely.”

Meanwhile, De Grey will issue approximately 111 million shares at 4.5 cents per share, with Bell Potter Securities acting as lead manager to the placement.

The company said DGO Gold would contribute $500,000 of the $5 million raised, subject to shareholder approval.

De Grey said it would use the funds raised from the placement to undergo a more systematic and comprehensive drilling program at its Mallina gold province.

Chairman Simon Lill said the company had experienced a difficult period since the gold price highs in August.

"The decision to raise additional capital now was difficult but ensures funding is secured and enables ongoing exploration activity at what we consider to be one of the best greenfields gold projects in Australia," he said.

"We are pressing on to establish sufficient resources before considering development or other options."

Employment services group The Go2 People is also looking to raise around $1.9 million through a 1-for-1 rights issue at 1.6 cents per share, together with 1-for-2 options exercisable at 4 cents per share.

The Belmont-based firm said it would use the proceeds for general working capital purposes and for future corporate costs.

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