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Peninsula Minerals to raise up to A$10m for uranium feasibility studies

Peninsula Minerals (ASX: PEN) has committed to raise up to $10 million through a placement and nonrenounceable rights issue. The company will resume trading this morning after the trading halt that began 24 March 2010.

The funds raised  will be used to fund the development and exploration of Peninsula’s uranium projects including resource and exploration drilling at the Lance Projects in Wyoming, USA, where an initial JORC compliant resource is expected in April 2010.

The Rights Issue will also fund feasibility studies at the Lance Projects in Wyoming, USA, where a prefeasibility study isexpected to be completed in May 2010  and drilling and commencement of an independent scoping study at the Karoo Projects in South Africa.

$5 million will be raised pursuant to the placement of up to 125 million ordinary shares at an issue price of 4 cents per share, together with one free attaching listed (PENOA) option exercisable at 3 cents on or before 30 June 2012 for every four (4) new shares subscribed (the Placement).

The Placement will be made pursuant to Peninsula’s ASX Listing Rule 7.1 capacity. The Placement is being made to institutional clients of Hartleys Limited. Hartleys  has acted as Corporate Adviser to Peninsula and Lead Manager to both the Placement and the Rights Issue.

In addition to the Placement, Peninsula has resolved to offer eligible shareholders the opportunity to participate in the capital raising on the same terms as the Placement, through a non-renounceable prorata rights issue on a 1:11 basis at 4 cents per share to raise up to a further $5 million.

Peninsula’s Executive Chairman Gus Simpson stated “we are delighted by the strong demand received, which has resulted in the introduction of a number of international and domestic resource funds to the Peninsula share register."

"The Rights Issue ensures that all Peninsula shareholders are able to participate in the capital raising on a pro-rata basis and otherwise on the same terms as the Placement. The funds raised pursuant to the capital raising will enable Peninsula to aggressively advance its projects towards development,” he added.

The Rights Issue is not underwritten and the directors reserve the right to place any shortfall pursuant to the Rights Issue.

Disclosure: The author holds no positions in the company