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Exploration|PROJECT
Exploration|PROJECT
exploration|project

NexGen secures $250m uranium purchase deal

The Rook 1 project

The Rook 1 project

9th May 2024

By: Creamer Media Reporter

     

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Canadian uranium exploration company NexGen has inked an agreement with MMCap International for the procurement of 2.7-million pounds of uranium concentrate.

The deal is valued at $250-million, based on the five-day average spot price, marking a strategic move amid a tightening global uranium market.

In a binding term sheet, NexGen commits to issuing $250-million in secured convertible debentures to MMCap in exchange for the uranium concentrate. These debentures will be convertible into about 23-million common shares of NexGen, equating to about 4.3% of the company’s issued and outstanding common shares.

“At a time when available physical uranium is extremely tight and expected to continue to be scarce given the long-term supply deficit, this purchase represents a strong opportunity for the company to bolster its marketing discussions and optimises the optionality of project financing structures under evaluation,” said NexGen CEO Leigh Curyer

Upon closing of the previously announced Australian chess depository interest offering, as well as the transaction with MMCap, NexGen will have about C$600-million in cash and $250-million worth of physical uranium on its balance sheet.

This will be a major boost for the company in funding the anticipated capital needs to develop the Rook I project, in Canada.

Edited by Creamer Media Reporter

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