Peninsula Raises A$69.9M, Draws Full US$15M Debt Facility for Lance Project
Peninsula Energy has completed a significant A$69.9 million equity raise backed by cornerstone investor Tees River Uranium Fund, alongside fully drawing its Davidson Kempner debt facility, setting the stage for accelerated uranium production at its Lance Project in Wyoming.
- A$69.9 million equity raise finalized with strong cornerstone support
- Tees River Uranium Fund acquires 18.4% ownership stake
- Davidson Kempner debt facility fully drawn with partial equity conversion
- US$5 million settlement of terminated uranium sales contracts completed
- Funding allocated to Horizon 2 project development and operational ramp-up
Robust Capital Raise Signals Confidence
Peninsula Energy Limited has successfully closed a A$69.9 million equity raise, a critical milestone that underscores investor confidence in the company’s strategic direction and operational capabilities. The raise was strongly supported by cornerstone investor Tees River Uranium Fund, which now holds an 18.4% stake, alongside substantial backing from Washington H. Soul Pattinson. This infusion of capital follows shareholder approval at the Extraordinary General Meeting on 30 September 2025 and the receipt of proceeds from the second tranche of the placement.
Debt Facility Fully Drawn to Bolster Liquidity
Complementing the equity raise, Peninsula has fully drawn its US$15 million debt facility with Davidson Kempner, converting US$3 million of this into equity. This strategic move enhances the company’s liquidity and financial flexibility, providing a solid platform to advance its operational and strategic objectives. The combined funding package positions Peninsula well to accelerate production at the Lance Project and execute its Horizon 2 development plans.
Operational Progress and Contract Settlements
Peninsula has also settled an outstanding US$5 million payment related to the termination of historical uranium sales contracts, clearing a significant liability and simplifying its contractual obligations. With only one sales contract remaining; covering 600,000 pounds of uranium from 2028 to 2033; the company is streamlining its sales commitments as it ramps up production. The Lance Project, located in Wyoming, has already recommenced production of dried yellowcake, marking tangible progress toward full-scale operations.
Strategic Outlook and Market Positioning
Managing Director George Bauk highlighted the timing as ideal for an emerging uranium producer in North America, emphasizing the company’s focus on execution and establishing Peninsula as a key domestic supplier. The funding will support not only the production ramp-up but also critical studies at Kendrick and Dagger, alongside ongoing corporate and working capital needs. Positioned within a supportive US jurisdiction, Peninsula aims to play a pivotal role in the clean energy transition by supplying uranium to the domestic market.
Investor Confidence and Future Prospects
The strong participation from both new and existing investors reflects broad recognition of Peninsula’s disciplined approach and progress. The involvement of Tees River, with its expertise in the nuclear and uranium value chain, adds strategic value beyond capital. As Peninsula moves into this next phase, the market will be watching closely to see how effectively the company translates its financial platform into operational success and market share growth.
Bottom Line?
Peninsula’s strengthened financial footing sets the stage for a pivotal production ramp-up, but execution risks remain as market dynamics evolve.
Questions in the middle?
- How quickly can Peninsula scale production to meet its Horizon 2 targets?
- What impact will the equity dilution have on existing shareholders’ value?
- How will uranium market prices and demand influence Peninsula’s sales strategy?
