NexGen updates at-the-market equity program to $500M for Rook I

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) is updating its at-the-market equity program to sell up to $500 million worth of common shares from treasury. The company intends to use the proceeds of any sales, if made, mainly for development of its Rook I uranium project in northwest Saskatchewan.

The sale will be made in line with the terms of an equity agreement among NexGen, Virtu ITG Canada, and Virtu Americas on the TSX, NYSE, or any other exchange as agreed upon by the agents and the company. The current agreement ends a similar deal made on Jan. 5, 2023 that targeted up to $250 million in share sales. 

The offering will run until all the common shares issuable in the deal are sold or until Jan. 8, 2026. 

The Rook I project includes a new underground mine and mill in the southwestern part of the Athabasca Basin. The project received the environmental nod from the province in November, making Rook I the first approved greenfield uranium development in 20 years. NexGen has begun detailed work on the front-end engineering and design for the mine and mill.

The deposit has measured and indicated resources of 3.8 million tonnes grading 3.10% uranium oxide (U₃O₈), containing 256.7 million lb. of U₃O₈, enough for a mine life of 11 years. The feasibility study gives production as 29 million lb. U₃O₈ per year for the first five years. The total capital requirement will be $1.3 billion for both early works and pre-production expenditures.

NexGen anticipates the next steps in the Rook I approval process will be the receipt of provincial construction approval, a Canadian Nuclear Safety commission hearing, and finally, receipt of the federal environmental approval and licences.

Company shares traded at $9.28 apiece on Tuesday afternoon in Toronto, valuing the company at $4.8 billion. Its shares traded in a 52-week range of $4.75 and $9.38. 

— A previous version of this story referred to the ATM program as an “equity raise.” We regret the error.