Peninsula Energy director demonstrates confidence in uranium strategy through SPP participation

Peninsula Energy Ltd (ASX:PEN) (OTCMKTS:PENMF) (FRA:P1M) non-executive director Mark Wheatley has demonstrated his confidence in the company’s uranium strategy by participating in a recent share purchase plan (SPP). The SPP was completed on June 23, raising A$2 million and this followed a A$13.4 million placement to institutional and high net worth investors. Strong demand for the SPP necessitated a scale-back of valid applications from eligible shareholders in line with the guidelines provided in the SPP booklet. Valid applications were scaled back to the SPP maximum of A$2 million on a pro-rata basis. Wheatley acquired 30,534 shares in a direct interest, increasing the number of securities held after the change to 391,860 shares. Physical uranium purchase Net proceeds from the capital raising will be used to settle the purchase of 300,000 pounds of natural uranium concentrates (U3O8) concentrates at a price of US$31.35 per pound, which is reflective of the prevailing uranium spot price. Peninsula's board believes the acquisition of physical uranium is strategically aligned with preparations for the company’s flagship Lance Project to transition to low pH ISR operations. The acquired uranium inventory may ultimately provide a source of funding for the restart of operations at Lance following a final investment decision. PEN believes that holding uncommitted uranium inventories at a time when there is a strong and continued push by the US Government to support nuclear power generation and the domestic production of critical minerals like uranium, enhances its ability to successfully participate in expanding market opportunities. Settlement is due in June 2021 and the uranium will be stored at the Cameco facility in Ontario, Canada.