Deep Yellow has confirmed that it has received binding commitments to raise $220 million to advance development of its Tumas uranium project in Namibia.
The funds raised will be used to commence construction of the Tumas project following its final investment decision, which is expected to be made in the third quarter of 2024.
The $220 million placement will be raised through the issue of over 179 million fully paid ordinary shares at $1.225 per share.
A further $30 million will also be raised through a share purchase plan available to eligible Deep Yellow shareholders at $1.225 per share.
“We are very pleased with the success of the placement raising $220 million, buoyed by the overwhelming level of interest to participate, and would like to thank all existing and new investors for their support,” Deep Yellow managing director and chief executive officer 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 Tumas project represents a long-life high-quality asset timed to deliver into what is a supply constrained market.”
The funds will also help progress the Western Australian Mulga Rock project’s revised definitive feasibility study and exploration upside potential opportunities at the Alligator River project in the Northern Territory and the Omohola project in Namibia.
“The Mulga Rock project is next in the development schedule and provides a great opportunity to develop our second uranium mine, that will also benefit from integrating the value-adding critical minerals and magnetic rare earth elements associated with these deposits,” Borshoff said.
“With the funds raised, we can now move forward with confidence in progressing the development of our two advanced uranium projects while extracting the full resource potential from our highly prospective exploration projects and continuing with our successful M&A strategy to grow our project pipeline to be ready for more, much needed future development.”
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