The company will raise up to $A69.4 million for its Wyoming-based Lance project through a share placement, entitlement offer and new institutional support from Resource Capital Fund VI (RCF VI), as well as existing financial partners Pala Investments, BlackRock Funds and JP Morgan.

The funding will allow Peninsula to complete stage one of Lance, start production and achieve positive cashflow in the second year.

Peninsula has placed 840 million shares to RCF VI at 2c per share to raise $16.8 million. The shares include a free attaching option exercisable at 5c on or before December 31, 2018, for every two new subscribed shares.

In addition to the placement, Peninsula will present shareholders with a renounceable entitlement offer on the same terms as the placement. The maximum of around 2.63 billion shares would raise around $A52.6 million. Around 1.315 billion options will be issued under the offer.

The entitlement will be split in two, with institutional shareholders able to invest on December 16, while retail shareholders will be given from December 29 to January 23, 2015, to take up the offer.

The retail offer will include sub-underwritings from RCF VI and Pala Investments totalling $10.9 million.

A standby debt facility of $17.8 million split equally between Pala and RCF VI will also be made available to the company.

In all, RCF VI has agreed to invest $30.1 million through a combination of subscriptions under the placement, the institutional entitlement offer and the sub underwriting of the retail offer. Subject to acceptances RCF will hold between 19.6% and 25% of shares in Peninsula.

Pala will contribute as much as $9 million through institutional subscriptions and sub-underwriting the retail offer. Depending on acceptances Pala will hold between 11.6% and 14.1% of shares.

BlackRock Funds will invest $6.5 million through a subscription to the institutional entitlement offer and the issue of securities under an existing agreement.

JP Morgan will invest $6 million through subscription to the institutional entitlement offer and the issue of additional securities.

“Securing this funding is a defining achievement for the company as it enables us to transition to a uranium producer in 2015,” Peninsula executive chairman Gus Simpson said.

“The company is pleased to offer all shareholders the opportunity to participate in the entitlement issue at attractive pricing, given the projected NPV and the improving outlook for the uranium market.

“Also, the Peninsula board would like to acknowledge the combined support of our existing institutional shareholders; Pala, BlackRock Funds, JP Morgan, and our new strategic investor Resource Capital Fund who have been instrumental in delivering this funding solution.”

Independent advisor RFC Ambrian acted as lead manager and bookrunner to Peninsula on the placement and underwriter of the entitlement offer.

Peninsula’s Lance project has a minimum life of 20 years. At 53.7 million pounds, it is said to be the largest in-situ recovery JORC-compliant uranium resource in North America.

Shares in Peninsula were untraded today at A2c and remain in suspension.