Boss prepares for honeymoon with A$120m raise

PERTH ( – Uranium hopeful Boss Energy has launched an A$125 million fundraising round to fund the development of its Honeymoon uranium project in South Australia.

The fundraising includes a two-tranche equity placement to raise up to A$120 million and a Share Purchase Plan (SPP) to raise an additional A$5 million.

The first tranche of the equity placement will consist of 42.8 million shares, priced at A$2.15 each to raise an initial amount of A$92.1 million within the existing placement capacity of the society.

The second tranche of the placement, which will be submitted for shareholder approval at a general meeting scheduled for April, will consist of 13 million additional shares and will raise 27.9 million Australian dollars.

Under the SPP, eligible shareholders will be able to subscribe for up to A$20,000 of new shares in the company, also at a price of A$2.15 each. The SPP is scheduled to open on March 25 and close on April 7.

Boss said Wednesday that the offering price represented an 11.2% discount from the company’s last closing price and a 17% discount from its five-day volume-weighted average price.

“The fundraising will provide funding for Boss until Honeymoon begins production. We have deliberately structured our funding to maintain a very conservative and strong debt-free balance sheet, A$135 million of net cash and an additional contingency of A$100 million from our existing strategic uranium stockpile We have not incurred any debt as this requires pricing uranium through long-term contracts,” Boss MD said. Duncan Craib.

“Boss anticipates that engaging in long-term contracts in the current rising uranium price environment would negatively impact Boss’s long-term upside potential and we intend to await further contract price increases before making drawdown commitments.

“We are aware of the working capital issues unique asset developers have faced before us, and so we have worked tirelessly to reduce Honeymoon’s risk. This includes the current advanced front-end engineering design study, compiling our best-in-class development and operations team, purchasing our 1.25 million pound strategic inventory and now through our structure of conservative financing with no debt and significant balance sheet flexibility. ”

A 2020 feasibility study on the Honeymoon project estimated that it would require a capital investment of $63.2 million to restart operations, and that the project would generate over A$492 million in free cash flow before taxes over the life of mine of 12 years. , while the net present value was estimated at $163 million and the internal rate of return at 42.9%.

Stage 1 of the operation was based on the renovation of the existing solvent extraction plant, with significant process improvements, while stage 2 consisted of the addition of a solvent exchange circuit. ions, to achieve an annual production of two million pounds of uranium oxide equivalent.

“With the continued recovery of uranium markets, Boss to be financed and Honeymoon having a short and unique production lead time with all permits in place, Boss will be perfectly positioned to become the uranium producer of choice for investors and customers,” Craib said.

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