ASX-listed Peninsula Energy has terminated five of its six uranium offtake contracts as it advances plans to restart production at the Lance project in Wyoming. The agreements were mutually cancelled, subject to compensation payments totaling $6.6-million.

The company has already paid $1.6-million, with the remaining $5-million to be settled following a capital raise.  One contract remains in place, covering deliveries of 100 000 lb/y from 2028 to 2033, under a blended pricing structure combining base and market-linked components.

“We have one contract that remains in place for the delivery of 100 000 lb/y between 2028 and 2033,” said CEO George Bauk.

“The company would like to thank our customers for working with us through this process . . . This has been an essential step that was required to obtain access to financing required to execute the reset plan.”

Peninsula is targeting first production of dried yellowcake in the September quarter, with construction of the central processing plant complete as of July 27. Water commissioning, operator training and final regulatory inspections are under way. The plant will enter hot commissioning once it receives standard preoperational approval from the Wyoming uranium recovery programme.

“The central processing plant construction is essentially complete,” Bauk said. “The site team is now working through final punch list items, water commissioning the plant and undertaking training with the operators.”

The company said it had secured a $15-million debt facility on July 10 to support its reset plan. Its shares remain suspended as it finalises production guidance, the capital raise, and associated plans.

In parallel, Peninsula announced board changes. David Coyne has been confirmed as nonexecutive chairperson, and Keith Bowes - formerly with Lotus Resources and a technical consultant on the Honeymoon ISR project - will join the board as a nonexecutive director following completion of the raise.

“Keith is a seasoned resource executive… and provides the board with critical processing expertise that will assist the company as it moves back into production,” said Coyne.

Mark Wheatley and Harrison Barker retired from the board on July 29, in line with previously announced leadership changes.

“Both Mark and Harrison have been valued members of Peninsula for many years,” Coyne said. “Their leadership, dedication and tireless effort . . . has been greatly appreciated by their fellow directors and the Peninsula management team.”