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Deep Yellow (ASX:DYL) raises $41M to complete DFS at Tumas

Mining
ASX:DYL      MCAP $1.604B
24 February 2021 16:00 (AEST)
Deep Yellow (ASX:DYL) - Managing Director & CEO, John Borshoff

Source: Business News

Deep Yellow (DYL) has raised around $40.8 million to pursue various growth opportunities at its flagship Tumas Project and other assets in Namibia.

According to the terms of the offering, which was co-led by Euroz Hartleys Securities and Aitken Murray Capital Partners, the uranium exploration company issued just over 62.7 million shares to sophisticated and institutional investors at a price of $0.65 each.

A further $2 million is expected to come eligible shareholders pursuant to a share purchase plan, which is scheduled to close on March 18 this year.

“It is worth repeating that this highly successful fundraising has put the company in a strong financial position making us better able to execute on the multiple potentially wealth creating activities we have under consideration,” said Managing Director and CEO John Borshoff.

Deep Yellow intends to use the proceeds to complete a Definitive Feasibility Study at the Tumas Project along with preparations for early development, both of which are expected to reach completion by mid to late 2022.

Additional exploration and resource enhancement programs will be carried out at the company’s wholly owned Reptile Project and its Nova joint venture with JOGMEC.

According to the company, a portion of the proceeds may also be used for “disciplined value-creation” through selective project acquisitions.

Deep Yellow is down 7.14 per cent to $0.65 per share at 2:48pm AEDT.

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