US-focused Peninsula Energy is chasing $35.8m in a raising to wipe away a $27.8m debt facility that has overshadowed the company’s US uranium play, entering a trading halt on Friday as it runs a virtual roadshow.
Canaccord is leading the 7.1c a share raising, an underwritten eight-for-five renounceable rights issue at a healthy 45 per cent discount from the company’s 13c closing price on Thursday.
Like other junior uranium developers, Peninsula enjoyed a good run on the market from March, as uranium majors such as Kazakhstan’s Kazatomprom pulled back production in the face of the coronavirus crisis.
But despite positive news from the US in April, when the Trump administration’s Nuclear Fuel Working Group recommended the country expand its local uranium production and stockpiles, Peninsula has been held back by a lending facility with Resources Capital Funds and Pala Investments and others, with the company forced to extend the repayment terms in late April.
Canaccord is understood to have already sourced a $29.5m worth of cornerstone demand for the sub-underwriting of the issue, with further market bids due by market open on Tuesday.
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