Peninsula Energy has secured binding commitments from investors to raise A$60m ($39m) to resume production at the Lance uranium mine in Wyoming, US.

The company will raise A$50m via a placement to global institutional and sophisticated investors.

The placement will involve the issuance of 666.7 million Peninsula Energy shares at A$0.075 apiece.

Peninsula Energy will also raise another A$10m through a security purchase plan (SPP) at the same price.

In a press statement, the company said: “Under the SPP, Peninsula shares will be offered at the same issue price as the placement of $0.075 per share, together with one free unlisted attaching option for every two SPP shares allotted on the same terms as the attaching options.”

Proceeds from the placement will allow the company to commence pre-production construction work at the Lance mine.

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The company plans to restart production at the mine by late next year.

Peninsula Energy managing director and CEO Wayne Heili said: “We are pleased to receive such significant support from many existing and new, high-quality institutional and sophisticated investors, providing us with a large amount of equity to allow completion of plant construction and commencement of commercial production at Lance in late 2024.

“Importantly, the critical role of uranium and nuclear energy continues to gain rapid momentum across the globe, due to the significant benefits as a 24/7, clean energy source. Lance will come online at an opportune time and be well-positioned to deliver into a growing, supply-constrained market.”

Commercial uranium production at the Lance project commenced in 2015. In July 2019, the alkaline in-situ recovery uranium operations were suspended as a result of lower-than-expected recoveries.

Currently, the Lance mine comprises three areas, namely the Ross production area, the Kendrick production area, and the Barber exploration and development area.

In August 2023, Peninsula Energy unveiled a revised life-of-mine plan for the Ross and Kendrick areas.