Peninsula Energy Pays US$1.25M, Terminates 3 Sales Contracts in Project Reset
Peninsula Energy reports progress on its Lance Project’s Central Processing Plant and announces the termination of three sales contracts as part of a strategic reset plan, while engaging in funding discussions to support completion.
- Central Processing Plant construction nearing handover and commissioning
- US$1.25 million initial payment made to Samuel EPC under settlement agreement
- Three sales contracts terminated by mutual consent, removing future delivery obligations
- Advanced talks underway for short-term debt funding to support reset plan
- Shares remain suspended pending finalisation of contracts and production guidance
Central Processing Plant Progress
Peninsula Energy Limited has provided a significant update on its Lance Project in Wyoming, highlighting steady progress in finalising the construction of its Central Processing Plant (CPP). The company is focused on achieving regulatory handover and commencing hot commissioning, marking a critical step toward resuming full production. An initial payment of US$1.25 million has been made to Samuel EPC, the engineering contractor, as part of a recently executed settlement agreement.
Reset Plan and Funding Strategy
In parallel with plant construction, Peninsula is advancing a comprehensive reset plan designed to reposition the project for long-term sustainability. This includes ongoing negotiations with multiple parties for short-term debt funding, which will provide the necessary runway to complete remaining workstreams and support a revised production strategy. The company anticipates concluding funding arrangements in the coming weeks, a pivotal milestone for the project’s financial footing.
Sales Contract Terminations
As part of the reset plan, Peninsula has mutually terminated three sales contracts with global power utilities, collectively representing 1.95 million pounds of yellowcake over eight years. These terminations follow delays in the CPP’s completion and a thorough operational review, including wellfield development. Importantly, no take-or-pay liabilities or other financial obligations have been carried forward, and related accounting derivatives will be reversed. While this move removes guaranteed revenue streams, it also eliminates future delivery risks and associated liabilities, exposing the company fully to uranium price fluctuations for these volumes.
Ongoing Customer Engagement and Suspension Status
Peninsula continues constructive discussions with remaining customers and plans to re-engage former contract holders once the project demonstrates consistent production reliability. Meanwhile, the company’s shares remain suspended as it finalises outstanding sales contracts, production guidance, and financial plans. Managing Director George Bauk emphasised the deliberate and methodical approach being taken to ensure the project’s restart is robust and achievable, thanking customers for their understanding during this transitional phase.
Looking Ahead
The Lance Project remains one of the largest near-term uranium developments in the United States, positioning Peninsula as a key independent producer of yellowcake. The successful execution of the reset plan, completion of the CPP commissioning, and securing of funding will be critical to unlocking the project’s full potential and delivering value to shareholders in a market increasingly focused on clean energy resources.
Bottom Line?
Peninsula’s reset plan is gaining traction, but the path to full production and market re-entry hinges on funding and contract resolutions.
Questions in the middle?
- Which parties are involved in the short-term debt funding discussions, and what terms are being considered?
- How will the termination of key sales contracts affect Peninsula’s revenue forecasts and uranium price exposure?
- What is the updated timeline for full commissioning and production ramp-up at the Lance Project?
