Peninsula Energy Limited has decided to exit and sell its interests in the Karoo Projects in South Africa.
According to the company (Karoo Projects) a divestment of 74% interest in the Karoo Projects through an active process over the remainder of the 2017 calendar year is on the cards.
Peninsula says may opt to retain some level of exposure to the Karoo Projects, at a significantly reduced level.
Karoo Projects has advanced from exploration to early stage prefeasibility over the past decade.
Peninsula says has decided to focus its future capital expenditures on operating Lance Projects in Wyoming, USA, to best take full advantage of its long term sales contracts, which are well above current and forecast spot prices and extend out to 2030.
In addition, Peninsula recognises the importance of continuing to support its South African partners and stakeholders in the pursuit of the regulatory permitting processes for the Karoo Projects during the divestment process.
With the on-going challenges in the uranium market, the longer term growth and value creation opportunities for the company are more likely to be centred on cost competitive uranium ISR operations like the Lance Project, seeking value accretive acquisition opportunities and capitalising on the core competencies and strengths of the Company in the ISR field.