BAKU, Azerbaijan, June 17
By Nargiz Sadikhova - Trend:
Jersey-based Yellow Cake PLC is planning to raise to 62.5 million pounds to purchase uranium from Kazakhstan’s Kazatomprom National Atomic Company, Trend reports citing foreign media.
The company is planning to raise funds by placing almost 25 million new shares at a price of 250 pence each, and also by issuing shares under the PrimaryBid platform for certain retail investors. Proceeds from the fundraiser will go towards the purchase of physical uranium.
Kazatomprom said it will provide Yellow Cake with between 1 and 2 million pounds of uranium at a price of $32.23 per pound.
Cantor Fitzgerald Canada Corp, Canaccord Genuity Ltd, and Joh Berenberg, Gossler & Co KG will act as joint book-runners.
The company noted that having already exercised our 2021 purchase option with Kazatomprom in full, this new placing will enable us to purchase more uranium from both Kazatomprom, which has already indicated it will make up to 2 million pounds available in addition to our supply agreement, but also in the spot market.
“This will bring our total physical uranium holdings to well over 15 million pounds, or over 10 percent total annual uranium production. The outlook for uranium remains very positive and the current price a compelling buying opportunity," the company added.
NAC Kazatomprom JSC signed the long-term supply contract with Yellow Cake on May 10, 2018.
The agreement is long-term in nature, contemplating the delivery of up to $100 million of uranium annually, at market-related prices, for at least another 9 years, subject to and upon completion of subsequent follow-on offerings by Yellow Cake and certain other conditions.
Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 23 percent of global primary uranium production in 2020.
The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs, and Associates, 26 deposits grouped into 14 mining assets.
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