Tuesday, 30 November 2021 03:31 GMT

Peninsula Energy gets green light from U.S. Atomic Safety Licensing Board


(MENAFN- ProactiveInvestors)

Peninsula Energy (ASX:PEN) has been advised that the United States Atomic Safety and Licensing Board (ASLB) has ruled in favour of the Company and dismissed the three remaining environmental contentions (EC) brought against the Lance Projects Central Processing Plant and Ross Project Area in Wyoming U.S.A.

Peninsula is looking to have the Lance ISR projects in production in 2015 one of few global projects to do so.

In making its ruling the ASLB determined that the contentions raised by the Natural Resources Defence Council and the Powder River Basin Resource Council (together the Joint Intervenors) were unable to be substantiated by the evidence presented.

Contentions raised by the Joint Intervenors were heard by the ASLB between 28 September 2014 and 1 October 2014.

The issues under consideration were whether the final Supplemental Environmental Impact Statement (SEIS) issued by the United States Nuclear Regulatory Commission (NRC) failed to or inadequately addressed certain aspects of groundwater conditions.

During the hearing both Peninsula and staff members from NRC contended that the final SEIS meets the relevant provisions of the United States National Environmental Policy Act NRC regulations in 10 CFR Part 40 and the guidelines that NRC has established for uranium In-Situ Recovery (ISR) mining in the United States.

In concluding the ASLB ruled that “Joint Intervenors issue statements EC 1 EC 2 and EC 3 are resolved on the merits in favour of the (NRC) staff and Strata Energy Inc. and the proceeding before this Board is terminated”.

Peninsulas’ executive chairman Gus Simpson commented: “The ruling by the ASLB reflects the findings of the stringent licensing process implemented by numerous Wyoming State and US Federal agencies.

"Furthermore it acknowledges the extensive nature of environmental planning and ongoing management program put in place by Peninsula’s highly experienced ISR personnel.

With funding in place this matter resolved and construction advancing on schedule the Company looks forward to being in production this year.”


Lance Projects on fast track to production


Peninsula has already received $16.8 million of funding through a placement priced at $0.02 to Resource Capital Fund VI and completed the A$23.9 million accelerated institutional component of its renounceable entitlement offer.

This will allow the company to commence uranium production this year and achieve positive cashflow in the second year.


Entitlement offer extended


Peninsula's retail entitlement offer has been extended to 31 January 2015 due to the holiday period.

Peninsula is offering shareholders 0.615 new shares priced at $0.02 for every share held. This includes one free attaching option for every two shares subscribed.

The offer now closes on 30th January 2015.


Recent research reports 


Proactive Investors Research provided a Speculative Buy recommendation with a price target of $0.06 within 3-6 months based on Lance projects value as well as Peninsula's Karoo Projects in South Africa which has potential to rival Langer Heinrich in scale.


Perth broker Patersons has also provided a Speculative Buy recommendation with a 12 month price target of $0.06.

This reflects its securing Stage 1 funding with the support of major institutional investors and forward contracts that are well above the current spot uranium price.

 

Proactive Investors Australia is the market leader in producing news articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia UK North America and Hong Kong / China.


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