- Boss Energy (BOE) has entered binding agreements to purchase 1.25 million pounds of uranium
- The company received commitments from professional and sophisticated investors for $60 million through the issue of 428,571,429 shares at 14 cents per share
- The price per share represents a discount of 9.7 per cent to the last closing price and 10.6 per cent to the 10-day volume-weighted average market price
- The company says the acquisition of the uranium inventory will deliver benefits for Boss, including an enhanced financial position to support the re-start of the Honeymoon Uranium Project and increased flexibility in project funding and offtake negotiations with customers
- Boss Energy is down 6.45 per cent, trading at 14.5 cents
The company received commitments from professional and sophisticated investors for $60 million through the issue of 428,571,429 shares at 14 cents per share.
The issue price represents a discount of 9.7 per cent to the last closing price on 24 March 2021 of 15.5 cents, a 10.6 per cent discount to the 10-day VWAP and an 8.1 per cent discount to the 15-day volume-weighted average market price, prior to March 24, 2021.
Net proceeds of the placement will go towards the purchase of 1.25 million pounds of uranium on the spot market.
Binding agreements to purchase the uranium inventory, which is currently being warehoused in Illinois, have been entered at a weighted average price of US$30.15 per pound (roughly A$39.48 per pound), which is reflective of the prevailing uranium spot price.
Upon delivery and payment by Boss, title to the uranium inventory will transfer to the company with no other conditions required to be met.
Under the binding agreements, the company will acquire 0.25 million pounds of uranium by the end of April 2021, and the remaining one million pounds by the end of June 2021.
The remaining funds from the placement will be applied towards storage costs associated with the uranium inventory, placement costs, and general working capital.
The company says the acquisition will deliver benefits for Boss, including an enhanced financial position to support the Honeymoon Uranium Project’s re-start while de-risking its commissioning phase and increasing flexibility in project funding and offtake negotiations with customers.
“We have been able to create this unique opportunity thanks to our highly experienced and well-connected operatives in the global uranium market,” said Boss Managing Director Duncan Craib.
“The stockpile will be highly valuable to us on several levels as we secure offtake agreements, finalise project funding and move into production”.
Boss is down 6.45 per cent, trading at 14.5 cents at 10:50 am AEDT.