- Boss Energy (BOE) launches $125 million equity raising consisting of a $120 million share placement in two tranches and a $5 million share purchase plan (SPP)
- About 55.8 million new shares will be issued in the placement at a price of $2.15 each, which is also the issue price for the SPP
- The funds will largely go towards restarting production at its Honeymoon uranium project in South Australia
- BOE shares hold steady at $2.42
Boss Energy (BOE) is set to undertake a $125 million equity raising consisting of a $120 million share placement in two tranches and a $5 million share purchase plan (SPP).
The company said it would use the proceeds from the capital raise to help fund the planned development and restart of production at its Honeymoon uranium project in South Australia.
A total of about 55.8 million new Boss shares will be issued under the two-tranche placement at a price of $2.15 per share, with the first tranche’s expected completion on March 18.
The issue price represents an 11.2 per cent discount to the last closing price of $2.42 per share on March 15, a 17.0 per cent discount to the five-day volume-weighted average price (VWAP) and a 14.5 per cent discount to the 10-day VWAP.
The SPP will have the same offer price as the placement at $2.15 per share.
Boss said the bulk of the funds from the equity raising will be allocated to reviving the Honeymoon mine and see it ultimately become the country’s next uranium producer.
The company said Honeymoon was a technically proven, low-cost restart uranium project that has historically produced and exported uranium to global markets.
As a permitted mine, Honeymoon was expected to come on stream about 18 months from commencement of development.
“The capital raising will ensure Boss is funded through to the start of production at Honeymoon,” Managing Director Duncan Craib said.
“We have deliberately structured our funding to maintain a highly conservative and robust balance sheet with no debt, $135 million of net cash and an additional $100 million contingency from our existing strategic uranium inventory.
“With the uranium market’s continuing recovery, Boss to be funded (post equity raising) and Honeymoon having a unique short timeframe to production with all permits in place, Boss will be perfectly positioned to become the uranium producer of choice for investors and customers alike.”
BOE shares finished the day’s trading session steady at $2.42.