Project financing

Peninsula Energy Limited

Our attorneys represented Peninsula Energy Limited (PEN:AX) in a series of definitive agreements with funds managed by BlackRock Financial Management, Inc. to obtain financing for construction on the Lance uranium project in Wyoming.

The agreements provided for the issuance of US$22 million in senior secured notes and a placement of shares equivalent to a 10% interest in Peninsula. In addition, Peninsula obtained a further A$14.6m through equity issued to BlackRock and Pala, and granted BlackRock a first right of refusal on a second debt financing planned around the grant of the final Source Materials License (SML) for an amount up to US$80M. Peninsula will also issue BlackRock 90,000,000 unlisted options exercisable at $0.08 expiring December 5, 2017.

The drawdown of the proceeds of the Notes was subject to the satisfaction of certain conditions. Peninsula also agreed to place 293,004,848 fully paid shares to BlackRock at A$0.04 and 152,362,521 free attaching PENOC options, raising A$11,720,622. The share issue resulted in BlackRock holding 10% of Peninsula’s share capital after a placement of 71,888,075 shares and 37,381,799 free attaching PENOC options to Pala, raising an additional A$2,875,523. The funds raised from the issuance of the notes and shares will go towards completing pre-SML construction on the Lance projects, including deep disposal wells, monitoring wells, central processing plant site works, civil works, ancillary roads, plant long lead items and working capital.

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