The Capital Crunch: Canada’s NexGen targets Australian investors in $200 million placement

Several ASX-listed companies are welcoming in the new month by heading to market, and among them is British Columbia-based NexGen Energy (ASX:NXG) which is reaching out to Australian investors to raise C$180 million ($201.93 million).

Through CHESS Depositary Interests (CDI), NexGen – which has a market capitalisation of $7 billion – will issue 16.1 million common shares at C$11.11 per share. 

NexGen is tapping Australian investors to enhance the liquidity, trading volumes and market capitalisation of its CDIs listed on the ASX. 

Aitken Mount Capital Partners acted as lead manager and bookrunner in Australia, while Canaccord Genuity acted as lead co-manager to the offering. 

Proceeds will be used to fund the continued development and further exploration of the company’s mineral properties, as well as general working capital. 

Meanwhile, explorer Turaco Gold (ASX:TCG) has received firm commitments for a share placement to raise $18 million to fund an accelerated drill program at the Afema Project in Cote d’Ivoire. 

Turaco, which has a market capitalisation of $108 million, says the drill program aims to expedite a maiden resource estimate for Afema. 

The placement comprises the issue of 112.5 million shares at $0.16 per share, representing a 5.9% discount to the last trading price of $0.17 on 26 April 2024, as well as a 6.1% discount to the five-day volume weighted average price.

Argonaut Securities acted as lead manager and bookrunner to the placement, with Blackwood Capital and Bridge Street Capital Partners acting as co-managers. 

WA Kaolin (ASX:WAK) is also seeking to raise cash via a placement, but at a premium. 

The company will raise $7 million via a two-tranche placement at an issue price of $0.06 per share. 

The issue price represents a 42.9% premium to the last closing price of $0.042 and a 32.3% premium to the 15-day volume weighted average price of $0.045. 

Placement participants will receive one free unlisted attaching option for every four new shares allocated, exercisable at $0.09 and expiring on 30 June 2027. 

Funds will be used to execute the $17.79 million market capitalisation company’s strategy to produce premium finer grades of kaolin at its Wickepin plant.

Following the company’s latest announcement today (1 May 2024), WA Kaolin’s share price has spiked 26.19% to $0.053 as of 11.45am. 

WA Kaolin is also conducting a share purchase plan (SPP) to raise $500,000 on the same terms as the placement. The SPP’s record date is 30 April 2024. 

Canaccord Genuity acted as lead manager and bookrunner to the placement, as well as lead manager to the SPP. 

Lithium Universe (ASX:LU7) is undertaking a $3.64 million two-tranche capital raising to fund a Definitive Feasibility Study for a lithium processing hub in Quebec, Canada, as well as exploration on its Australian and Canadian portfolio. 

Tranche one will comprise about 95 million shares issued at $0.02 per share, while the second tranche will comprise 87.2 million shares issued at the same price, subject to shareholder approval. 

As part of the capital raising, one option will be issued for every two shares subscribed for, exercisable at $0.03 per option within 18 months. 

Write to Aaliyah Rogan at Mining.com.au   

Images: NexGen Energy
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.