Deep Yellow shares lower after unveiling $250m equity raise
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Deep Yellow dropped on the ASX after the uranium developer announced a $250 million equity raise.
Shares were 3.76% lower at $1.23 by 12:05pm AEDT.
Uranium developer Deep Yellow eyes $250m raise
The news: Uranium developer Deep Yellow is eyeing a $250 million raise through binding commitments and a share purchase plan to allow the company to commit to its growth strategy.
The numbers: Deep Yellow said it had received binding commitments to raise $220 million through a share placement at an issue price of $1.225 per share. The Perth-based miner holds a significant placement interest with a broad range of high-quality domestic and international funds added to its register.
The company will also offer eligible shareholders the opportunity to participate in a share purchase plan at the same issue price as the placement, with the aim of raising $30 million.
The context: Deep Yellow said the funds will be used to advance development of its Tumas project, with commencement of construction targeted for late Q3 2024. The money will also contribute to progressing development activities at the Mulga Rock project in Western Australia, continuing targeted exploration activities on current projects, and providing additional working capital including assessing M&A opportunities for further growth.
Assuming the completion of both the $220 million placement and $30 million share purchase plan, Deep Yellow expects to allocate $220 million to the Tumas project, $5 million to the Mulga Rock project, $5 million to targeted exploration activities, and $20 million to working capital and fees.
What they said: Deep Yellow CEO and managing director John Borshoff said: “The significant interest in the placement and quantum of equity raised represents an important milestone in the development of Deep Yellow, allowing us to materially advance the Tumas Project and bring an important greenfield conventional uranium project into production within the next three years".
The source: ASX announcement
