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Deep Yellow to raise funds to advance its Australia, Namibia uranium projects

Uranium

Photo by Bloomberg

11th March 2024

By: Marleny Arnoldi

Deputy Editor Online

     

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ASX-listed uranium developer Deep Yellow plans to raise A$220-million through a two-tranche placement and an additional $30-million through a share purchase plan (SPP) for eligible shareholders.

The company says the placement is strongly supported by new and existing domestic and international institutional investors, with demand so far exceeding the funds the company has sought to raise.

The first tranche will raise about A$140-million through the issue of 114-million shares at a price of A$1.22 apiece, while the second tranche will raise just under A$80-million through the issue of 64-milion shares – the latter of which is still subject to shareholder approval on April 30.

The SPP involves the issue of up to 24-million shares at the same price as the placement. It will be open to all shareholders who were registered as a holder of shares on March 8 and whose registered address is in Australia, New Zealand, Hong Kong, Panama or the UK.

All fundraising activity is expected to be concluded by May 2. 

Deep Yellow will use the proceeds to develop its flagship Tumas project, in Namibia, including the start of construction following a final investment decision.

The remainder of funds will be used to advance organic growth projects, including a definitive feasibility study for the Mulga Rock project, in Western Australia, and to explore upside potential at the Alligator River and Omohola projects, which are located in Australia’s Northern Territory and in Namibia, respectively.

Deep Yellow also continues to assess opportunities for value-accretive mergers and acquisitions.

“The significant interest in the placement and quantum of equity raised represents an important milestone in the development of Deep Yellow, allowing us to materially advance the Tumas project and bring an important greenfield conventional uranium project into production within the next three years,” CEO and MD John Borshoff comments.

He adds that, with the funds raised, the company can move forward with confidence in progressing the development of two advanced uranium projects, while extracting the full resource potential from exploration projects.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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