Australia-based uranium developer Deep Yellow has successfully secured binding commitments to raise A$220 million through a placement aimed at advancing its Tumas Project in Namibia.
This placement involves issuing 179,591,836 fully paid ordinary shares at A$1.225 per share. The fundraising will be conducted in two tranches, with the second tranche contingent on shareholder approval.
In the first tranche, Deep Yellow aims to raise approximately A$140.5 million by issuing 114,706,334 shares, while the second tranche targets around A$79.5 million through the issuance of 64,885,502 shares.
Additionally, the company plans to raise A$30 million through a Share Purchase Plan (SPP) offered to eligible Deep Yellow shareholders.
The placement enjoys support from both new and existing domestic and international institutional investors. The majority of the funds will be allocated to advancing the Tumas Project, including commencing construction post final investment decision (FID) and securing debt funding.
Furthermore, the funds will be utilized for organic growth initiatives such as updating the definitive feasibility study for the Mulga Rock Project and exploring the Alligator River Project in the Northern Territory, along with the Omohola Project in Namibia.
Deep Yellow also intends to pursue its inorganic growth strategy by focusing on mergers and acquisitions that enhance value.
John Borshoff, the Managing Director and CEO of Deep Yellow, expressed satisfaction with the successful placement, highlighting its significance in advancing the Tumas Project and bringing a crucial uranium project into production within the next three years.
This achievement is seen as a culmination of Deep Yellow’s strategic vision over seven years, anticipating the current uranium supply dynamics.
In March 2022, Deep Yellow finalized an all-stock merger with Vimy Resources valued at A$658 million. The merger, completed in August of the same year, established a new global uranium player with substantial uranium mineral resource inventories exceeding 389 million pounds.
