Mining giant Boss Energy (ASX:BOE) has raised $205 million via a single tranche placement to fund the 30% purchase of the Alta Mesa Uranium Project in South Texas, US.
The $1.52 billion market capitalisation company will be putting the funds towards the transaction, under which enCore Energy has agreed to sell 30% of its ownership stake in Alta Mesa to Boss for US$60 million alongside a US$10 million investment from Boss into enCore, the project restart, exploration activities, and working capital.
Under the placement, Boss issued 51.9 million new shares at $3.95 per share.
Macquarie Capital, Bell Potter Securities, and Canaccord Genuity acted as joint lead managers to the placement.
Sternship Advisors and Aitken Mount Capital Partners acted as financial advisors, while Thomson Geer acted as legal advisor to Boss in relation to the placement.
Boss Energy Managing Director Duncan Craib says this is an ‘exciting’ time for the company as it moves to become a multi-mine in-situ recovery (ISR) uranium producer by the first half of next year.
“The proceeds will be used to drive Boss Energy’s multi-pronged growth strategy, with significant exploration spend and work towards expanding production capacity at Honeymoon.”
“The proceeds will be used to drive Boss Energy’s multi-pronged growth strategy, with significant exploration spend and work towards expanding production capacity at Honeymoon”
The Alta Mesa transaction is anticipated to be completed in February 2024.
Following the placement, Boss is aiming to raise an additional $10 million via a share purchase plan (SPP) to eligible Australian and New Zealand shareholders.
From 5:00pm WST on 5 December, eligible shareholders have the opportunity to apply for up to $30,000 worth of new shares at the same price of $3.95 per new share.
Boss Energy is a uranium-focused company targeting first production from its Honeymoon Uranium Project in Q4 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Boss Energy
