NexGen Energy (TSX: NXE; NYSE: NXE) has closed its previously announced $150-million bought deal financing. The company issued 33.4 million common shares at a price of $4.50 per share. The underwriters, led by BMO Nesbitt Burns and Canaccord Genuity were also granted a 30-day option to purchase up to an additional 5.0 million shares under the same terms.
The proceeds of the offering will be used to continue development of the 100% owned Arrow uranium deposit at the Rook I project in the southwest of the Athabasca Basin.
The Arrow deposit has an indicated resources of 256.6 million lb. uranium oxide in 2.89 million tonnes grading 4.03%. These figures include a high grade for of 171.0 million lb. uranium oxide in 460,000 tonnes grading 17.85%. There is also an in inferred resource of 91.7 million lb. of uranium oxide in 4.84 million tonnes grading 0.86%. The deposit remains open in all directions.
The pre-feasibility study published in 2018 outlined a project with a pre-production cost of $1.19 billion and a mine life of 9 years. The average after-tax net cash flow over that period would be $909 million.