Canadian junior NexGen Energy has announced $110-million of financing for the Rook I uranium mine and mill development project in Saskatchewan.
The company has entered binding term sheets with Queen's Road Capital Investment (QRC) and Washington H Soul Pattinson and Company (WHSP) for a private placement of unsecured convertible debentures.
The debentures will be convertible at the holder's option into about 16.27-million common shares of NexGen.
In addition, WHSP has agreed to purchase 8.7-million outstanding common shares of NexGen from QRC, enabling QRC to partially fund its purchase of debentures.
“Today's $110-million financing from two highly respected investors, our long-standing investor in QRC and, the addition of WHSP in Australia, optimally places NexGen to deliver on its stated objectives in the development of the Rook I project,” commented CEO Leigh Curyer.
NexGen recently received confirmation of the completion of the provincial environmental assessment technical review and submission of the final provincial environmental impact statement to the Saskatchewan Ministry of Environment.
Curyer reports that permitted pre-construction site works are well advanced.
The 2021 feasibility study outlines an 11-year mine capable of producing 29-million pounds a year of uranium oxide in the first five years, making it the biggest uranium mine in the world.
The total capital expenditure for the mine would be $1.3-billion, of which $157-million is allocated for early works and $1.14-milion for preproduction execution capital.