Peninsula Energy Limited and its wholly owned subsidiary, Strata Energy Inc. (together 'Peninsula' or the 'Company') (ASX: PEN, OTCQB: PENMF) wishes to provide a funding update for the Company and activities at the Lance Project, located in Wyoming.
Peninsula has secured up to US$15 million debt financing from global investment management firm Davidson Kempner (the 'lender'), which will allow the Company to continue key development and commissioning activities and finalise the reset of its sales contract book. Importantly, it will provide the Company with available cash, time and flexibility to complete the items that Peninsula considers appropriate to have in place to best position the Company to progress a successful equity capital raising in the near term.
Peninsula will drawdown US$10 million under the cash advance facility as soon as possible (subject to the satisfaction of customary conditions precedent) as the Company focuses on completing several key workstreams, including water commissioning, URP approval and hot commissioning, with a target of dry yellowcake production by the end of August 2025. The Company notes that the URP approval process is a typical pre-operational inspection and approval process required by the State of Wyoming to verify that Strata has in place adequate procedures and has conducted adequate training of personnel prior to the commencement of operations.
The lender has also committed to subscribe for up to US$3 million1 of shares in Peninsula as part of the Company's next equity capital raising, with the amount payable by the lender to subscribe for the shares to be set off against part of the drawn balance of the debt facility as at the date of the equity capital raising. Subject to shareholder approval, the amount of drawn down cash advance remaining (ie approximately US$7 million where the lender has subscribed for US$3 million under the Company's next equity capital raising), will be refinanced and a new convertible debt facility for the remaining balance will come into effect. An additional US$5m convertible debt facility will also become available upon obtaining shareholder approval and completion of an equity raising. Peninsula intends to hold a shareholder meeting to approve this refinancing facility by the end of August 2025.
Peninsula Energy's Managing Director and CEO, George Bauk commented: 'We are very pleased to be able to secure this debt financing with a highly regarded leading global investment management firm. As the Company works through resolving key matters like the offtake contract book, it is clear that we needed to secure short-term financing to ensure we can continue to methodically and efficiently deliver on our development and commissioning program at Lance and further strengthen our cash position and balance sheet together with and whilst progressing an equity capital raising. The debt financing enables the Company to maintain momentum with the program which would have been challenging from a timing perspective if solely relying on the equity raising to provide funding, A low cash balance may also have impacted on the Company's ability to maximise its chances of a successful raising, and we feel very positive about that process now the debt financing is in place. Through this debt financing we will promptly draw down US$10 million, which importantly allows us to maintain our trajectory towards starting operations in the coming months and then resuming trading on the ASX. It is extremely positive that a global investment management firm is committed to the Company with support for the upcoming equity raising. I would like to thank Davidson Kempner for their support through what is a critically important development for our Company. I acknowledge the support of our shareholders. I understand the last few months have been frustrating, however they have also been transformative for Peninsula, where we have reset necessary operational and financial foundations to allow us to ensure when we restart production, we can execute on our targets and establish Lance as key supplier of yellowcake to the growing United States and global market.'
About Davidson Kempner
Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than $35 billion in assets under management and over 500 employees across seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai.
Contact:
George Bauk
Tel: +61 8 9380 9920
Email: Info@pel.net.au
Cameron Gilenko
Tel: +61 466 984 953
Stephanie Richardson
Tel: +61 423 459 440
ABOUT PENINSULA ENERGY LIMITED
Peninsula Energy Limited (ASX:PEN) is one of the only ASX-listed uranium companies providing US production and direct market exposure. Its 100% owned Lance Projects in Wyoming has re-commenced uranium recovery from wellfields in December 2024 and will continue ramping up the production rate in the second half of 2025 in conjunction with the commissioning of a complete central processing plant. Lance is one of the largest, independent near-term uranium development projects in the US. Once back in full production, Lance will establish Peninsula as a fully independent end-to-end producer of yellowcake, well-placed to become a key supplier of uranium and play an important role in a clean energy future.
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