Deep Yellow rattles tin for Tumas 

Deep Yellow (ASX:DYL) has secured binding commitments to raise $220 million through a placement of more than 179.591 million shares at $1.225 per share. 

The $975 million capitalisation company says the funds will be used to develop its flagship Tumas Project in Namibia, where the start of construction post-final investment decision (FID) is expected to be made in late Q3 2024. 

Aitken Mount Capital Partners and Bell Potter Securities are acting as the joint lead managers and bookrunners and Jett Capital Advisors is acting as co-manager.

Funds will also be utilised to progress its Mulga Rock Project in Western Australia, continue targeted exploration on other current projects, and as well as for assessing merger and acquisition (M&A) opportunities. 

According to the global uranium developer, a further $30 million will be raised through a subsequent share purchase plan (SPP) of 24.489 million shares at the same price as the placement, giving existing eligible shareholders the opportunity to participate in the capital raising.

Deep Yellow expects the additional capital to ‘significantly’ strengthen its balance sheet, with a pro-forma cash balance of $279 million, allowing the company to commit to its growth strategy with confidence. 

Managing Director and CEO John Borshoff says: “We are very pleased with the success of the placement raising $220 million, buoyed by the overwhelming level of interest to participate, and would like to thank all existing and new investors for their support.

The significant interest in the placement and quantum of equity raised represents an important milestone in the development of Deep Yellow, allowing us to materially advance the Tumas Project and bring an important greenfield conventional uranium project into production within the next three years. 

This is the result of a consistently applied, focused 7-year strategy based on the foresight that the uranium supply squeeze currently being experienced was inevitable. This strategy has been supported by a proven, highly credentialed and experienced uranium team that has successfully assembled a relevant pipeline of geographically diverse projects through both organic and inorganic growth endeavours.”

Deep Yellow is focused on progressing a dual pillar growth strategy to establish a globally diversified, tier one uranium company aiming to produce more than 10 million pounds of uranium per annum. 

The company’s portfolio includes the Tumas Project in Namibia and the Mulga Rock Project in Western Australia. 

Write to Adam Drought at Mining.com.au

Images: Deep Yellow
Author Image
Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.