Asset manager Sprott (TSX, NYSE: SII) said it plans to buy about $200.1 million worth of physical uranium for its dedicated fund after raising twice as much money as planned via a bought deal.
Canaccord Genuity is to acquire 11.6 million units of the Sprott Physical Uranium Trust at a price of $17.25 per unit, double what had been announced hours earlier, Toronto-based Sprott said Monday morning in a statement. Strong investor demand led to the size of the deal being increased, Sprott said. The offering is expected to close on or about June 20.
News of the investment comes after spot uranium prices rose about 5.5% in May – their second significant gain in as many months – on renewed investor confidence in the industry amid clear signs of a coordinated US government push toward nuclear energy. Uranium term prices held steady at about $80 per lb. last month.
