Peninsula Energy Secures US$15M Finance Facility

Peninsula Energy (ASX:PEN) announced that it has entered into an agreement with Investec Bank Plc for a US$15M inventory finance facility.
As quoted in the press release:

The Facility will serve as support financing to assist in covering inventory and other general costs over the next two years, while production and revenue increase at the Lance in-situ recovery uranium projects in Wyoming, USA. Given the contractual norms within the uranium industry of quarterly and bi-annual uranium delivery schedules under Term contracts, this facility provides Peninsula with additional funding flexibility should it be required.
Key terms of the Facility are:

• 2 year secured facility;
• US$7.5m Inventory Finance Facility which is drawable against uranium inventory delivered to uranium conversion facilities and has a margin of USD LIBOR + 2.5%;
• US$7.5m Revolving Loan Facility which is re-drawable and repayable at Peninsula’s discretion, and has a margin of USD LIBOR + 3.5%;
• Annual line fee of 2.0% and one-off establishment fee of 1.5%; and
• At current USD LIBOR rates, the all-in interest rate is less than 6% p.a. over the 24 month term.

Investec is an international specialist banking and asset management group who provide a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa and Australia. Investec’s global resources team provide project, corporate and convertible debt finance for a wide array of companies within the mining and oil and gas sectors.

Peninsulas Energy Managing Director/CEO, Gus Simpson, stated:

We are pleased to secure this facility with Investec. The facility provides Peninsula with short term funding flexibility as production at Lance ramps up, which is particularly important given the often lumpy nature of uranium deliveries and associated cash receipts.

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