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Peninsula Energy Opts For Smaller Capital Raising To BlackRock, Sophisticated Investors

Peninsula Energy (ASX:PEN) will has scaled back a capital raising to $2 million to BlackRock and to sophisticated investors to minimise dilution after it met a second major condition of the US$22 million debt facility from BlackRock.

Under the terms of the previous convertible notes agreement with BlackRock, two material conditions were required to be met before the $US22 million debt funds could be made available to Peninsula to accelerate construction at its Lance Projects in Wyoming, USA.

With these in hand, Peninsula will issue 80 million new shares at $0.025 per share and investors will also receive one free attaching listed option.

Funds raised will be used to progress feasibility studies at the Karoo Projects in South Africa, general activities at the Lance Projects and for working capital.

Peninsula executive chairman Gus Simpson stated, "This Placement and the BlackRock facility allows construction activities to be accelerated at the Lance Projects and the advancement of the Karoo Projects feasibility work.

"Both are important steps in advancing the company towards becoming a multi-source uranium producer."

The allotment of the placement shares and options is not subject to shareholder approval and will fall within the company's 15% placement capacity.

Construction Activities at Lance Projects in Wyoming

The company has been progressing construction of the Lance projects using equity funds.

Works started include:

- Offsite fabrication of long lead equipment items such as the ion exchange vessels, concentrate precipitation plant, yellow cake drying plant and reverse osmosis plant;
- Initial site civil works, including development of access roads;
- Construction of new site offices and laboratory; and
- Ongoing drilling and installation of monitoring wells at Production Unit One within the Ross Project Area.

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