Boss Energy, which is buying a stake in the Alta Mesa project in the US, has completed its bookbuild to raise A$205-million through a single tranche placement of new fully paid ordinary shares.
The offer received strong demand from existing shareholders, as well as from several new domestic and global institutional investors.
“We are extremely pleased with the outcome of the capital raising and we are grateful for the support of our existing and new shareholders,” said MD Duncan Craib.
The offer comprises the issue of 51.9-million new shares at A$3.95 a share. In addition to the offer, Boss will raise A$10-million through a share purchase plan.
Proceeds raised from the offer will be used to fund the Alta Mesa transaction, the Alta Mesa project restart, exploration activities and working capital, enCore equity investment and spend on Prompt Fission Neutron technology, as well as production and resource growth initiates for the Honeymoon project, in Australia.
Boss bought a 30% share in Alta Mesa, in Texas, from NYSE American- and TSX-listed enCore for A$70-million.
Alta Mesa is an in-situ recovery uranium project in south Texas. It has a licensed central processing plant (CPP) with 1.5-million pounds a year of uranium oxide (U3O8) capacity through the existing ion exchange circuit that is planned for restart in early 2024.
The CPP has the capacity to process, dry and package up to two-million pounds a year of U3O8, and that capacity can be met with the installation of additional ion exchange resin processing circuits similar to those in use at enCore's Rosita CPP.
The project hosts a National Instrument 43-101 resource of 3.41-million pounds at 0.109% U3O8 in the measured and indicated category with an additional 16.79-million pounds at 0.120% U3O8 in the inferred category, and there is significant potential to grow the mineral resources within the 80 900 ha project area.