Deep Yellow Limited announced a successful placement raising A$220M to advance the Tumas Project towards production.
The funds will also support the development of the Mulga Rock Project in Western Australia and continue exploration activities for resource expansion.
The placement attracted significant interest from both new and existing domestic and international institutional investors.
An additional A$30M is expected to be raised through a Share Purchase Plan (SPP) at the same price as the Placement, allowing existing shareholders to participate.
The raised funds will strengthen Deep Yellow's balance sheet, with a pro-forma cash balance of A$279M, supporting the company's growth strategy.
The Placement was completed at an issue price of A$1.225 per share, in two tranches, with the second tranche subject to shareholder approval.
The SPP is open to eligible shareholders in Australia, New Zealand, Hong Kong, Panama, and the United Kingdom, excluding the United States.
Funds will be allocated to Tumas Development Capital (A$220M), Mulga Rock Project (A$5M), Exploration (A$5M), and Working Capital and Fees (A$20M).
Aitken Mount Capital Partners Pty Ltd and Bell Potter Securities Limited acted as Joint Lead Managers for the Placement.
The announcement emphasizes Deep Yellow's strategy to become a globally diversified, Tier-1 uranium company with a focus on advancing its projects in Tier-1 uranium jurisdictions.
This announcement is a summary of the company approved ASX announcement on 11/3/2024.