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  1. BLUTO

    357 Posts.

    In my in box today. A good summary.

    all the best,

    Peninsula Energy to be ASX’s next uranium producer in 2015

    Thursday, February 05, 2015 by Proactive Investors

    Peninsula Energy to be ASX’s next uranium producer in 2015
    Peninsula Energy (ASX:pEN) is poised to be the ASX’s next uranium producer in 2015 after completing the entitlement offer component of its $69.4 million capital raising.

    Demonstrating the strong interest, as Peninsula transitions to production at Lance Projects, the majority of funds were raised from institutions such as Resource Capital Fund VI, Pala Investments Limited, BlackRock funds and JP Morgan Asset Management UK.

    Proceeds will be used to fund remaining construction and ramp up of the Lance ISR uranium projects through to positive cash flow.

    The high yield standby debt facility provided in December 2014 remains available to the company though it does not intend to make any drawdowns under this facility.

    “The company is very pleased with the outcome of this fundraising and the high level of support from existing shareholders and the new incoming institutional investors,” executive chairman Gus Simpson said.

    “The company now has a debt free, fully funded path to production in 2015.”

    Entitlement Offer

    Besides the $16.8 million institutional placement, Peninsula completed the fully subscribed $23.9 million institutional entitlement offer on 18 December 2014.

    The retail entitlement offer closed on 30th January 2015 with gross proceeds of $9.78 million from over 1,600 applications.

    Approximately 946 million new shares and 473 million new options, representing those entitlements not taken up by eligible retail shareholders as well as entitlements that ineligible retail shareholders were not eligible to take up, were offered for sale under a retail shortfall bookbuild.

    This commenced on 2nd February 2015 and closed on 4th February, raising a further $8.06 million.

    In addition, $10.87 million was raised through sub-underwriting commitments from Resource Capital Fund VI L.P and Pala Investments Limited bringing the total funds raised under the Retail Entitlement Offer to the full $28.7 million.
    Lance Uranium Projects

    Peninsula’s Lance Projects in the Powder River Basin have JORC ISR Resources of 53.7 million pounds of U3O8, the largest of its kind in North America.

    It also has significant exploration targets estimated at 158 – 217 million pounds of U3O8.
    The Lance Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.

    The Project is highly scalable and can ramp up production to maximum permitted levels (3,000,000 pounds of U3O8 per year) as demand and pricing for U3O8 increase and maintain a mine life that will span many decades.

    In late January, the United States Atomic Safety and Licensing Board (ASLB) ruled in favour of the Company and dismissed the three remaining environmental contentions (EC) brought against the Lance Projects Central Processing Plant and Ross Project Area.

    Proactive Investors Research Report

    On 15th January 2015, Proactive Investors placed a Speculative Buy recommendation on Peninsula Energy with a 3-6 month price target of $0.06 and 12-18 month price target of $0.16 in a Research Report.

    Shares in the company were at $0.019 at the day of the report and are currently trading at $0.022.

    Proactive noted then that Peninsula is undervalued, is months from production and poised to become a major U.S. uranium producer.

    Proactive Investors calculated an Enterprise Value attributable to Lance and Karoo of $392.1 million or $0.06 per share as at the time of the research report.

    Lance provides the near term potential as production and further development work are underway.

    We believe that Karoo has potential to rival Langer Heinrich and that potential will play out over the next 3-18 months.

    We believe these provide a path toward creating a global major U3O8 house and business valued in excess of $1 billion or $0.16 per share (undiluted) - dependent on higher U3O8 prices.

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