Peninsula Energy (ASX:PEN) has revealed that substantial shareholder Resource Capital Fund VI has increased its stake in the company to 21.34%, following the institutional entitlement offer priced at $0.02 per share.
In total, Peninsula has secured $69.4 million in fully underwritten institutional funding which is more than enough to complete construction of Stage 1 of the Lance Uranium Projects in Wyoming, commence uranium production in 2015.
Funding breakdown
Peninsula has already received $16.8 million of this funding through a placement priced at $0.02 to Resource Capital Fund VI and has completed the $23.9 million accelerated institutional component of its renounceable entitlement offer.
A further $28.7 million will be raised through the retail entitlement offer at the same price.
A total of $10.9 million of the retail offer is underwritten by RFC Ambrian and sub-underwritten by RCF VI and Pala. RCF VI and Pala Investments have also provided a $17.8 million standby debt facility guaranteeing the Retail Entitlement Offer.
Significantly this month, Peninsula garnered an additional uranium concentrate sale and purchase agreement with a major U.S. power utility from 2016 to 2024.
Together with the existing 2011 sale & purchase contract, the company will deliver up to almost 2 million pounds of U3O8 through to 2024.
Analysis
The stars are beginning to align for Peninsula given the projected NPV for the Lance Projects, sales and purchase agreements, funding and improving outlook for the uranium market.
The Peninsula share register is beginning to look like a who's who as Resource Capital Fund VI L.P. joins Pala Investments Ltd, BlackRock funds and JP Morgan AM UK Ltd as significant shareholders.
The fully underwritten $69.4 million funding provides Peninsula with development funding for Stage 1 construction of the Lance Uranium Projects and sets the stage for the company to become a uranium producer in 2015.
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