NexGen traded 4.6% higher at C$11.00 at 12 pm EDT. The company has a market capitalization of C$5.9 billion ($4.3bn).
In a binding term sheet, NexGen commits to issuing $250 million in secured convertible debentures to MMCap in exchange for the uranium concentrate. These debentures will be convertible into about 23 million common shares of NexGen, equating to about 4.3% of the company’s issued and outstanding common shares.
“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 optimizes the optionality of project financing structures under evaluation,” said NexGen CEO Leigh Curyer.
NexGen’s main development focus is the Rook I project, hosting the Arrow discovery from 2014, considered to be the largest development-stage uranium deposit in…
