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NexGen Energy Announces Strategic Purchase of 2.7 Million Pounds of Uranium with Issuance of US$250 Million Convertible Debenture
VANCOUVER, BC, May 8, 2024 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has entered i
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" VANCOUVER, BC, May 8, 2024 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has entered into a binding term sheet with MMCap International Inc. SPC (\"MMCap\") for the purchase (the \"Purchase\") of 2,702,410 pounds natural uranium concentrate (\"U3O8\") for an aggregate purchase price of US$250 million based on the five day average UxC spot price. In satisfaction of the purchase price for the U3O8, the Company has agreed to issue US$250 million aggregate principal amount of unsecured convertible debentures (the \"Debentures\"). The Debentures will be convertible at the holder's option into approximately 23 million common shares of NexGen (the \"Common Shares\") equivalent to ~4.3% of the Company's issued and outstanding Common Shares. Upon closing of the previously announced Australian Chess Depository Interest (\"CDI\") offering, as well as this transaction with MMCap, the Company will have ~C$600 million in cash and US$250 million worth of physical uranium on its balance sheet. Leigh Curyer, Chief Executive Officer, commented: \"At a time when available physical uranium is extremely tight and expected to continue to be scarce given the long-term supply deficit, this purchase represents a strong opportunity for the Company to bolster its marketing discussions and optimises the optionality of project financing structures under evaluation. The Company is at a pivotal time, shaping the industry towards transparency, whilst prioritising local community engagement and participation in Saskatchewan and Canada, and providing the globe with clean energy fuel. The transaction is also a significant endorsement of NexGen's approach, role and opportunity in the nuclear sector. Upon closing of the CDI offering and this strategic uranium purchase, the Company will hold cash and uranium worth over C$930 million and will significantly assist the Company in funding the anticipated capital needs to develop the Rook I Project.\" Strategic Alignment Provisions In connection with the Debenture issuance, the Company will enter into an investor rights agreement with MMCap, containing voting alignment, standstill, and sale and transfer restriction covenants. Terms of the Debentures The Debentures will carry a 9.0% coupon (the \"Interest\") over a 5-year term....