Deep Yellow Limited has received binding commitments to raise N$2.7 billion (A$220 million) to develop the Tumas Project in Namibia and advance exploration at the Mulga Rock Project in Australia.
The company will issue 179,591,836 fully paid ordinary shares at an issue price of A$1.225 per share.
The placement will be in two tranches, with the second tranche subject to shareholder approval.
In addition to the placement, the company is initiating a share purchase plan, offering eligible Deep Yellow shareholders an opportunity to contribute to the growth strategy and potentially raise an additional N$373 million (A$30 million).
The company will issue 179,591,836 shares in two tranches. The first tranche will raise approximately N$1.7 billion (A$140.5 million) before costs through the issue of 114,706,334 shares on March 15, 2024, using the company’s Listing Rule 7.1 placement capacity.
The second tranche is expected to raise about N$987 million (A$79.5 million) before costs through the issue of 64,885,502 shares.
Deep Yellow CEO John Borshoff said the significant interest in the placement and quantum of equity raised allow the company to materially advance the Tumas Project and bring an important greenfield conventional uranium project into production within the next three years.
“This is the result of a consistently applied, focused seven-year strategy based on the foresight that the uranium supply squeeze currently being experienced was inevitable, Borshoff said.
He added that the highly credentialed and experienced uranium team has assembled a relevant pipeline of geographically diverse projects through organic and inorganic growth endeavours.
“The Tumas Project represents a long-life, high-quality asset timed to deliver into a supply-constrained market. The Mulga Rock Project is next on the development schedule.
“It provides a great opportunity to develop our second uranium mine, which will also benefit from integrating the value-adding critical minerals and magnetic rare earth elements associated with these deposits.
“Crucially, Deep Yellow is well-positioned, and this is timed perfectly. With the funds raised, we can now move forward with confidence in progressing the development of our two advanced uranium projects while extracting the full resource potential from our highly prospective exploration projects and continuing with our successful M&A strategy to grow our project pipeline to be ready for more, much needed future development.”
