NexGen Energy Successfully Closes $224M CDI Offering in Australia

NexGen Energy, a prominent player in the uranium mining sector, has successfully completed a significant fundraising endeavor, securing $224 million through a CHESS Depository Interests (CDI) offering in Australia.

CDI

NexGen Energy, a prominent player in the uranium mining sector, has successfully completed a significant fundraising endeavor, securing $224 million through a CHESS Depository Interests (CDI) offering in Australia. The proceeds from this offering will fuel the continued development and exploration of NexGen’s mineral properties, including the high-potential Rook I project in the Athabasca Basin, Saskatchewan, Canada.

Raising Funds for Development and Exploration:

The recent CDI offering involved approximately 20.2 million shares priced at $11.11 per share. This fundraising initiative, executed under an amended and reinstated placement agreement dated April 30, 2024, was facilitated by Aitken Mount Capital Partners, serving as the lead manager and bookrunner in Australia. The substantial capital injection will support NexGen’s ongoing efforts in advancing its mineral properties and financing general corporate activities.

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Key Mineral Properties and Exploration Progress:

NexGen’s flagship asset, the Rook I project, has been a focal point of the company’s endeavors. Notably, the Arrow discovery, made in 2014 within the Athabasca Basin, stands out as one of Canada’s largest development-stage uranium deposits. In a recent development, NexGen uncovered new greenfield uranium mineralization approximately 3.5 kilometers from the Arrow deposit. This discovery, located on a previously untested conductor segment of the Patterson Corridor East, underscores the potential for further resource expansion.

Exploration Targets and Prospects:

The exploration target associated with the new mineralization remains promising, with significant potential for expansion in multiple directions. NexGen highlights that the target area is predominantly open, extending over 1.5 kilometers along strike. Such prospects offer substantial opportunities for resource growth and further delineation of the project’s mineralization potential.

Regulatory Approvals and Project Advancements:

NexGen has made significant strides in advancing its Rook I project, securing environmental approval for the proposed mine in November 2023. Currently, the company is actively engaged in the permitting process for the construction of the underground mill and mine infrastructure. These regulatory milestones underscore NexGen’s commitment to adhering to stringent environmental standards while progressing its operations.

Feasibility Study Highlights and Future Outlook:

A feasibility study conducted in 2021 outlined compelling economics for the Rook I project. The study proposed an initial 11-year mine life, projecting an annual production capacity of 29 million pounds of uranium oxide (U3O8) during the first five years of operation. With an estimated capital expenditure of $1.3 billion, the project demonstrates robust fundamentals and long-term viability in the uranium market.

NexGen Energy’s successful closure of the $224 million CDI offering marks a significant milestone in its journey towards advancing the Rook I project and furthering exploration efforts. With a solid financial foundation in place, coupled with promising exploration results and regulatory approvals, NexGen is well-positioned to capitalize on the immense potential of its mineral properties, contributing to the growth and sustainability of the uranium mining sector.

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