PERTH (miningweekly.com) – Uranium explorer Deep Yellow will raise A$40.8-million in a share placement to fund work on its Tumas project, in Namibia, and to advance targeted merger and acquisition opportunities.
The company told shareholders that it received firm commitments from institutional, sophisticated and professional investors for the subscription of more than 62.7-million new shares at an issue price of 65c each.
The shares will be placed under the company’s existing placement capacity.
Deep Yellow on Thursday said that it would also give eligible shareholders an opportunity to participate in the capital raising through a share purchase plan (SPP), which will also be priced at 65c a share and capped at A$2-million.
Eligible shareholders will be able to subscribe for up to A$30 000 worth of additional new shares under the SPP.
“We are very pleased with the response to our placement and would like to thank all current and new investors for their support, as we take the next major step towards establishing a tier-one uranium company,” said Deep Yellow MD and CEO John Borshoff.
“This impressive raising places Deep Yellow in a very strong financial position to advance our stated and differentiated growth strategy to propel the company into the top league of aspiring uranium developers.”
He said that the company would now turn its attention to the completion of the Tumas definitive feasibility study, along with advancing targeted merger and acquisition opportunities, as it continued to progress towards its primary objective of creating a 5-million- to 10-million-pound low cost, multi-project, global uranium company.