PERTH (miningweekly.com) – Uranium developer Boss Energy has completed the bookbuild for its A$120-million capital raise.
The company earlier this week announced the two-tranche share placement, under which 56-million shares would be placed at a price of A$1.15 each, to fund development costs of the Honeymoon uranium project, in South Australia.
The first tranche will consist of 43-million shares, and will raise some A$92-million under the company’s existing placement capacity, while the second tranche of a further 13-million shares, raising a further A$28-million, will be subject to shareholder approval.
Shareholders are expected to vote on the second tranche placement at a meeting scheduled for late April.
Boss said on Friday that the offer and sell-down had received strong demand from both existing shareholders as well as a number of new domestic and global institutional investors.
“The overwhelming demand for the placement reflects the competitive strengths of Honeymoon and its status as Australia’s next uranium producer,” said MD Duncan Craib.
“The combination of the strong outlook for the uranium market and Honeymoon’s short lead time to production means Boss is ideally positioned to capitalise on its huge opportunity.”
Boss is hoping to raise an additional A$5-million through a share purchase plan, which will also be priced at A$2.15 each, and will allow shareholders to subscribe for up to A$20 000 worth of new shares.