NexGen Energy closes $224M CDI offering in Australia

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) has raised $224 million to fund the continued development and further exploration of the company’s mineral properties, and for general corporate purposes.

The recent CHESS Depository Interests (CDIs) consisted of approximately 20.2 million shares priced at $11.11 per share, under an amended and reinstated placement agreement dated April 30, 2024, with lead manager and bookrunner in Australia, Aitken Mount Capital Partners.

Australian CDIs give investors all the economic benefits of foreign financial products and Australian Government Bonds without conferring legal title to those products, according to the ASX. CDIs also enable investors to hold and transfer
their interests in financial products electronically via CHESS, something they couldn’t do if they held the products directly.

The offering was given to Australian investors to enhance the liquidity, trading volumes and market value of NexGen’s CDIs listed on the ASX.

NexGen’s properties include the Rook I project, hosting the Arrow discovery made in 2014, in Saskatchewan’s Athabasca Basin. Arrow is considered to be the largest development-stage uranium deposit in Canada.

In March, NexGen found new greenfield uranium mineralization 3.5 km from its Arrow deposit. The new mineralization is located on a previously untested conductor segment of the Patterson Corridor East. The mineralization was intersected by drilling for 19.8  metres beginning at 347.7 metres, with the highest reading at over 61,000 counts per second (cps) over 3 metres.

The exploration target is predominantly open in all directions, including over 1.5 km along strike, the company said.

NexGen received environmental approval for the proposed Rook I mine in November 2023. Permitting for construction of the underground mill and mine is underway.

A 2021 feasibility study for Rook 1 outlined an initial 11-year mine capable of producing 29 million lb. of uranium oxide (U₃O₈) per annum during the first five years. Capex is estimated to be $1.3 billion.