- Deep Yellow (DYL) has received commitments to raise $40.8 million via a placement
- More than 62 million shares will be issued to institutional, sophisticated and professional investors at 65 cents
- This price represents a 13.7 per cent discount to the 10-day volume-weighted average price
- Deep Yellow will also offer shareholders the chance to participate in a share purchase plan (SPP) to raise an additional $2 million
- Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any transaction costs
- Deep Yellow will use the funds to complete a definitive feasibility study (DFS) at its Namibian uranium projects
- Shares in Deep Yellow have dropped 16 per cent and are trading at 71 cents
Deep Yellow (DYL) has received commitments to raise $40.8 million via a placement.
The company entered a trading halt February 16 but did not disclose how much it intended or what it would use the funds for.
All up, 62,768,803 shares will be issued to institutional, sophisticated and professional investors at 65 cents.
This price represents a 13.7 per cent discount to the 10-day volume-weighted average price.
Shares are expected to be issued on February 24.
Deep Yellow will also offer shareholders the chance to participate in a share purchase plan (SPP) to raise an additional $2 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares, which will also be priced at 65 cents, without incurring any transaction costs.
The plan will open on February 25, close on March 18, and shares will be issued on March 29.
Deep Yellow will use the funds across its Namibian uranium projects, specifically to complete a definitive feasibility study (DFS) at its Tumas project, undertake exploration at its Reptile project, and for general working capital.
“This impressive raising places Deep Yellow in a very strong financial position to advance our stated and differentiated growth strategy to propel the company into the top league of aspiring uranium developers,” CEO and Managing Director John Borshoff said.
“We now turn our attention to the completion of the Tumas DFS, along with advancing targeted M&A opportunities, as we continue to progress towards our primary objective of creating a five-to-10 million pound, low cost, multi-project, global uranium company,” he added.
Deep Yellow has dropped 16 per cent on the market and shares are trading at 71 cents at 11:34 am AEDT.