Deep Yellow Limited’s share purchase plan for the ongoing development of the Tumas Project in Namibia and the advancement of the Mulga Rock Project in Western Australia was oversubscribed by N$182 million (A$15 million).
The company offered a maximum of 24.489.795 shares at A$1.225 each to raise N$264 million (A$30 million), but it received applications for 36.8 million shares for N$545 million (A$45 million).
Deep Yellow’s managing director and CEO, John Borshoff, expressed his gratitude for the shareholders’ support.
He highlighted that the funds raised from the share purchase plan and the A$220 million placement will play a pivotal role in the company’s growth strategy.
“These funds, totalling A$250M, will be instrumental in advancing the Tumas Project in Namibia and the Mulga Rock Project in Western Australia, our flagship ventures.
“This SPP, plus the funds from the recently announced A$220 million placement, together totalling A$250 million, will support our growth strategy, the ongoing development of the flagship Tumas Project in Namibia and the advancement of the Mulga Rock Project in Western Australia.
“Tranche 1 of the placement has been completed, and I have great confidence in completing Tranche 2 of the placement following the general meeting of shareholders on April 30,” Borshoff said.
Deep Yellow will confirm the final share numbers to be issued and allotted on April 15, 2024.
Deep Yellow plans to develop Tumas to produce 3.6Mlb of U3O8 per annum, with an anticipated life of over 30 years.
The Tumas Project hosts one of the country’s largest known paleochannel-hosted calcrete uranium deposits, with an indicated mineral resource of 108.5Mlb at 265ppm eU3O8.
Since the initial discovery of uranium mineralisation in the Tumas palaeochannel in 2006 and refocused exploration with new concepts starting in 2016, probable reserves of 67.3Mlb of U3O8 have been defined.
An initial Scoping Study on Tumas delivered positive results in January 2020. This was followed by a Pre-Feasibility Study, completed in February 2021, which delivered robust results in line with, and in some cases better than, the Scoping Study.
The completion of the Tumas DFS in February 2023 was the most significant event in Deep Yellow’s history.
Deep Yellow also owns the Omahola project, the Nova JV with the Japanese agency JOGMEC, and the Yellow Dune JV.
Together with the Tumas 1, 1 East, Tumas 2 and Tubas deposits, the palaeodrainage contains about 139 million pounds of U3O8 inferred and indicated resources, of which 67.3 million pounds are currently held in a probable ore reserve.
