NexGen Energy (TSXV:NXE) has announced that it has closed the previously announced private placement of $60 million in aggregate principal amount of unsecured convertible debentures to CEF Holdings and/or affiliates of its shareholders.
Leigh Curyer, president and CEO, said:
Closing of this financing places NexGen with a treasury in excess of C$100M and based on the current footprint of Arrow mineralization is budgeted to advance and optimise Arrow on its development path through to a decision to construct. I would like to take the opportunity to personally thank all involved in the execution of this financing milestone for NexGen. I look forward to delivering regular drilling and development results from Arrow as we progress this exciting project.
As quoted in the press release:
The Debentures were issued pursuant to investment agreements entered into between the Company and CEF, and a trust indenture entered into between the Company and Computershare Trust Company of Canada.
The Debentures have a term of five years and bear interest at a rate of 7.5% per annum, payable semiannually in arrears, with 5% of such interest payable in cash and the remaining 2.5% payable in common shares of the Company, such shares to be issued at a price per share equal to the 20-day volume-weighted average trading price calculated in U.S. dollars (the “20-day VWAP”) prior to the date each such interest payment is due.
The Debentures are convertible at the holder’s option into common shares of the Company at a conversion price of US$2.33, representing a 30% premium to the 20-day VWAP prior to the announcement of the Offering.
Click here to read the full press release.
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