Deep Yellow raises N$91m for growth
By Business Reporter
URANIUM mine, Deep Yellow has raised N$91million (A$9 million) through a share placement, which will be used to fund the company’s growth strategy.
The company issued more than 29 million shares, at a price of 31c each, under its placement capacity.
Deep Yellow MD and CEO John Borshoff said last week that the capital raised was an important moment in the development of the company.
“As mentioned previously and important to repeat - this is a very important moment in the development of our company. Our consistent, differentiating strategy for growth, at a time when the uranium sector is in downturn, has resonated - attracting quality institutional and long-term investors.
“The support has been most heartening, strengthening the Company’s share register for its next stage of growth as we build on our stated objectives. These are exciting times for the Company and our shareholders. Additionally, we are confident we will raise a further A$2.5m from the SPP currently underway and this will further bolster our balance sheet, while allowing eligible shareholders to participate in this capital raising,” he said.
The funds raised will be used to fund short-term working capital requirements, including expanding the existing uranium resource base in Namibia, and evaluating the best approach to advance the project acquisition growth strategy to take advantage of the current uranium downturn.
The Company has received the subscription funds from a select number of quality investors who participated in the Placement. Accordingly, Deep Yellow has today issued 29,032,258 fully paid ordinary shares in the Company (Shares) at an issue price of A$0.31 per Share under the Company’s Listing Rule 7.1 capacity.
The Placement was priced at a discount of 2.5 cents (7.4%) to the closing price of Shares traded on the Australian Securities Exchange on 30 May 2019 (the trading day before the commencement of the trading halt prior to announcement of the capital raising). Aitken Murray Capital Partners was Sole Lead Manager to this successful Placement and charged a fee of 5% on the funds raised.
Deep Yellow Limited is a specialist differentiated uranium company implementing a new contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company’s uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a global, geographically diverse asset portfolio. The Company’s cornerstone suite of projects in Namibia is situated within a top-ranked African mining destination in a jurisdiction that has a long, well regarded history of safely and effectively developing and regulating its considerable uranium mining industry.