Peninsula Energy (ASX:PEN) has secured debt financing of up to $15 million with Davidson Kempner to continue key development and commissioning work at its Lance project in Wyoming while progressing an equity capital raising, according to a Thursday Australian bourse filing.

The financing comprises a $10 million cash advance to be drawn shortly, subject to customary conditions, and a $5 million convertible debt facility contingent on shareholder approval and completion of an equity raise. Also, up to US$10 million of the cash advance may be refinanced into convertible debt, subject to shareholder approval.

The company expects to produce dry yellowcake uranium before the end of August, pending completion of outstanding items, water commissioning, standard pre-operational approval under Wyoming's Uranium Recovery Program, and successful hot commissioning.

The company said it continues to finalize various matters, including completion of the reset of the sales contract book, production guidance, together with financial and other associated plans that are required to enable the launch of an anticipated equity raise.