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Peninsula Energy pulls placement to Nucore Energy

Peninsula Energy (ASX: PEN) has terminated its agreement to raise $15 million through a private placement to Nucore Energy due to current market conditions.

The placement was originally announced to the ASX on 23 June 2011, but Peninsula and Nucore have mutually agreed to the cancellation as it is unlikely that the pricing structure can be achieved in the near term.

The placement was priced at a 50% premium to the 10 day volume weighted average price in the period immediately following publication of the Peninsula’s Definitive Feasibility Study at the Lance Projects in Wyoming, U.S.

Peninsula said the completion of the placement at the current price levels has not been considered as it would result in excessive dilution to existing shareholders.

NuCore is a North American company focused on the commercial nuclear fuels market and services sector.