The Peninsula Energy Ltd (ASX: PEN) share price won't be going anywhere today. Securities in the uranium miner entered a trading halt before today's session at the request of the company.
Here's why shares in Peninsula are halted and what it could mean for the company's share price.
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Why is the Peninsula share price in a trading halt?
Earlier today, Peninsula requested that securities in the company be placed in a trading halt.
According to the company's market update, Peninsula has requested the trading halt pending capital raising. The company expects the trading halt to last until either an announcement is made or before trading commences on Friday 28 May.
Peninsula did not provide any official details on the capital raising. However, an article in the Australian Financial Review provided some insight.
According to the article, brokers Canaccord and Shaw and Partners will be participating in the placement. In addition, Peninsula is aiming to raise $15 million at a price of 15 cents per share followed by a $2 million share purchase plan. The article also noted that the capital raising will be used for working capital and to finance Peninsula's recent acquisition of 300,000 pounds of uranium concentrate.
At the end of yesterday's trading session, the Peninsula share price closed at 18.5 cents per share.
More on the Peninsula Energy share price
Peninsula is an ASX-listed uranium mining company. The company's flagship Lance Project located in Wyoming, USA is the only US-based uranium project using a low pH, in-situ recovery (ISR).
The Peninsula share price has bolted more than 50% since the start of May. Earlier this month, shares in Peninsula received a boost after providing a field demonstration update for its wholly-owned Lance Project. Before making a final investment decision, Peninsula conducted an ISR in order to generate site-specific data. The company noted that achieving and maintaining the correct operational pH is critical to successful uranium operations.
In late April, Peninsula also released a promising quarterly activities report. For the March quarter the company reported an operating cash loss of US$2.2 million with no sales recorded. However, for the 9 months to 31 March, Peninsula noted an operating cash loss of US$5.7 million on sales of US$3.4 million.
