NexGen raises US$110M for Rook I uranium project

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) has entered an agreement with Queen’s Road Capital Investment and Washington H Soul Pattinson and Co. that will raise US$110 million in unsecured convertible debentures to support development of its Rook I uranium project in northwestern Saskatchewan.

“Today’s US$110 million financing from two highly respected investors, our long-standing investor in QRC and, the addition of WHSP in Australia, optimally places NexGen to deliver on its stated objectives in the development of the Rook I project, said NexGen CEO Leigh Curyer in a release.

Curyer added that it was “an incredibly exciting time” for the company, which just announced progress in permitting of the project at the provincial level last week.

Rook I is a proposed new uranium mine and mill development is the largest development-stage uranium project in Canada and is in the uranium-rich district of the southwestern area of the Athabasca Basin near Patterson Lake. 

NexGen recently completed a provincial environmental assessment technical review and submitted a final provincial environmental impact statement to the Saskatchewan Ministry of Environment. Parallel to the provincial process, NexGen is also making its way through the federal environmental review process, after completing responses to federal technical and public review comments received on the draft environmental impact statement for Rook I. 

Permitted pre-construction site work is already well advanced. The project is expected to cost $1.3 billion to build.

The debentures will be convertible at the holder’s option into approximately 22 million common shares of NexGen, with the actual number of common shares dependent on the exchange rate at the time of conversion.

In addition, Washington H Soul Pattinson has agreed to purchase 8.7 million outstanding common shares of NexGen from Queen’s Road to partially fund Queen’s Road’s purchase.