Business
NexGen Energy Announces US$30 Million Financing with Queen's Road Capital
VANCOUVER, May 11, 2020 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, NYSE MKT:NXE) is pleased to announce that it has entered into a binding
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" VANCOUVER, May 11, 2020 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX:NXE, NYSE MKT:NXE) is pleased to announce that it has entered into a binding agreement with Queen's Road Capital Investment Ltd. (\"QRC\") (TSXV: QRC) for a financing package totalling US$30 million, comprising: (a) US$15 million of common shares of NexGen (the \"Placement Shares\"); and (b) US$15 million aggregate principal amount of unsecured convertible debentures (the \"Debentures\"). The US$15 million private placement of Placement Shares will result in the issuance of approximately 11.6 million Placement Shares at a price of C$1.80 per Placement Share, (equal to a 5% premium to the 20-day VWAP of the Company's common shares (the \"Common Shares\")). The Debentures will be convertible at the holder's option into approximately 8.9 million Common Shares (at current exchange rates, with actual number of Common Shares to be issued dependent on exchange rate at time of conversion). Leigh Curyer, Chief Executive Officer of NexGen, commented, \"We welcome QRC as a new shareholder of NexGen. QRC is becoming a leading financier to the global resources sector in portfolio companies incorporating elite standards of ESG. QRC complements NexGen's existing well respected shareholder base of long term committed supporters of the Company. NexGen's commitment to deliver highly positive impacts to as many people as possible covering economic, health, community and government through the optimal development of the Arrow Project, particularly in these times, is reflective of its leading organizational culture. \" Warren Gilman, Chairman and Chief Executive Officer of Queen's Road Capital, commented, \"I am excited to announce QRC's investment into NexGen. QRC seeks to invest in world-class mineral resource assets in safe jurisdictions and the Arrow Project, as the world's largest to-be-developed high-grade uranium deposit located in Saskatchewan, Canada, meets that criteria. I have been a director of NexGen since 2017 and today's financing will ensure the Company continues to successfully advance the exciting Arrow Project towards production.\" The Terms of the Debentures The Debentures will carry a 7.5% coupon (the \"Interest\") over a 5-year term. The Debentures will be convertible at the holder's option into Common...