Peninsula Energy Secures $15M Debt Facility to Fund Lance Project Ramp-Up

Peninsula Energy’s Strategic Funding Move

Peninsula Energy Limited (ASX – PEN) has taken a significant step to underpin the development and commissioning of its flagship Lance uranium project in Wyoming by securing a debt facility of up to US$15 million from Davidson Kempner, a global investment management firm with over US$35 billion in assets under management. This financing package is designed to provide the company with the necessary liquidity and operational flexibility as it prepares to ramp up production and pursue an equity capital raising.

The debt facility is structured in two parts – a US$10 million cash advance facility expected to be drawn down shortly, subject to customary conditions, and a US$5 million convertible debt facility contingent on shareholder approval and the successful completion of an equity raise. Additionally, Peninsula plans to refinance up to US$10 million of the initial cash advance with convertible debt, further aligning its capital structure with upcoming equity initiatives.

Advancing Towards Production Milestones

With the debt facility in place, Peninsula is targeting dry yellowcake production by the end of August 2025. This timeline hinges on completing several critical steps, including water commissioning of the Central Processing Plant, obtaining pre-operational approval from the Wyoming Uranium Recovery Program (URP), and successful hot commissioning. The URP approval is a standard regulatory requirement ensuring operational readiness and personnel training before production commences.

Peninsula’s Managing Director and CEO, George Bauk, emphasized the importance of this financing in maintaining project momentum. He noted that without this debt facility, the company might have faced timing challenges relying solely on equity funding. The support from Davidson Kempner not only strengthens Peninsula’s balance sheet but also signals confidence from a reputable global investor ahead of the planned equity raise.

Equity Raising and Shareholder Engagement

Davidson Kempner has committed to subscribing for up to US$3 million of shares in Peninsula as part of the forthcoming equity capital raising, with the subscription amount offset against the debt facility balance. Peninsula intends to hold a shareholder meeting by the end of August 2025 to approve the refinancing arrangements and convertible debt facilities. These steps are crucial to ensuring the company’s financial foundation is solid as it moves towards full production and eventual resumption of trading on the ASX.

The company is also finalizing the reset of its sales contract book and production guidance, key components that will underpin investor confidence and market positioning. The Lance Project, once fully operational, is poised to become a significant supplier of yellowcake in the US and global markets, aligning with the growing demand for clean energy resources.

Looking Ahead

Peninsula’s recent funding announcement marks a pivotal moment in its operational turnaround. The combination of secured debt, planned equity capital raising, and regulatory progress sets the stage for a potential re-rating of the company’s prospects. However, the path forward remains contingent on shareholder approvals, successful commissioning, and regulatory milestones.