Nexgen Energy Ltd (TSX-V:NXE, NYSE:NXE, ASX:NXG) told investors it has closed a US$110 million strategic convertible debenture financing as it bolsters its cash position to fund exploration and development of its properties in Saskatchewan’s Athabasca Basin.
Including the proceeds from the offering and sales made under its previously announced at-the-market equity program, NexGen said its cash reserves are approximately C$330 million.
The company’s flagship Rook I Project is Canada’s largest high-grade development-stage uranium resource.
It also has a 50% equity stake in IsoEnergy, which owns the Hurricane uranium deposit in the eastern Athabasca Basin that PI Financial analysts called “the most significant high-grade plus-50-million-pound uranium discovery in years (one of the Athabasca’s top 10 deposits)”.
NexGen has been tipped as a potential takeover target as utilities scramble to lock in fuel supplies, with uranium reemerging as a critical carbon-free source of baseload power in the global battle to combat climate change.
The company’s NYSE-listed shares were up 1.3% at US$6.20 in Monday premarket trading. Its TSX-V listed shares closed at C$8.00 on Friday and have gained 31% year to date.
Contact the author at stephen.gunnion@proactiveinvestors.com