Australia-listed Peninsula Energy on Friday announced a A$70-million equity raise to fund a reset of its Lance uranium project in Wyoming, US, completing a turnaround plan that includes new production guidance, contract terminations and a more conservative ramp-up profile.

The uranium developer will raise the funds through a fully underwritten two-part offering: a A$21.9-million institutional placement and a A$48-million accelerated non-renounceable entitlement offer. The new shares will be issued at A$0.30 each, a 51.6% discount to the company’s last traded price of A$0.62 before the deal was announced.

The raise is backed by cornerstone investor Tees River Uranium Fund, which has committed up to A$22.5-million. US credit investor Davidson Kempner Capital Management will also participate, converting part of its existing loan into equity. Directors David Coyne, George Bauk and Brian Booth committed to subscribe for A$231 000 worth of shares, subject to shareholder approval.

The capital will be used to complete construction payments on Lance’s Central Processing Plant (CPP), advance wellfield development, fund exploration at the Kendrick and Dagger prospects, settle outstanding offtake contracts and cover working capital.

The funding follows an internal review under a refreshed board and management team, which has sought to rebase the company’s near-term outlook with more conservative forecasts.

Peninsula also adjusted its production guidance to 50 000 lb of uranium oxide in 2025, before ramping up to 400 000 lb to 500 000 lb in 2026 and 500 000 lb to 600 000 lb in 2027. The revised profile is less than half of the company's earlier ambitions, which had targeted more than 1.5-million pounds by 2027.

As part of the reset, Peninsula terminated five of its six uranium offtake agreements, paying $6.6-million to exit the commitments. A $5-million final settlement will be funded from the equity raising. The company now carries only one remaining sales contract, covering 600 000 lb of supply from 2028 to 2033.

Further, Peninsula has already secured approval from the Wyoming Uranium Recovery Programme to begin feeding uranium-loaded resin into Phase 2 of the CPP. 

CEO George Bauk said the capital raise marked the final step in a comprehensive reset of the company.

“The reset of Lance and the securing of this funding provides us with a platform and plan to achieve sustainable production at a time when there are strong tailwinds for uranium globally particularly in the United States,” Bauk said.

He added: “Lance is a high-quality resource with long-term production and growth potential in one of the best jurisdictions globally for uranium production. We now have our own processing facility for producing yellowcake, which is a strategically important asset for both Peninsula and Wyoming.”

With commissioning of the CPP under way, Bauk said production was on track to start in the September quarter. “This equity raise represents the final step in Peninsula’s comprehensive reset. It allows us to focus on the final commissioning of the CPP while optimising the performance of wells with production on track to commence in the September quarter 2025,” he said.

Bauk also welcomed Tees River’s entry as a shareholder, calling its investment an endorsement of management’s strategy.