IN BRIEF: Yellow Cake to raise funds for purchase of uranium

Yellow Cake PLC - Jersey-based uranium investor - Intends to raise up to GBP62.5 million through ...

Alliance News 16 June, 2021 | 5:42PM
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Yellow Cake PLC - Jersey-based uranium investor - Intends to raise up to GBP62.5 million through placing of at most 25 million new shares at a price of 250 pence each.

Will also issue share under PrimaryBid platform for certain retail investors. Proceeds from the fundraise will go towards the purchase of physical uranium.

In particular, JSC National Atomic Company Kazatomprom said it will provide Yellow Cake with between 1 and 2 million pounds of uranium at a price of USD32.23 per pound.

Cantor Fitzgerald Canada Corp, Canaccord Genuity Ltd and Joh Berenberg, Gossler & Co KG will act as joint bookrunners.

"Having already exercised our 2021 purchase option with Kazatomprom in full, this new placing will enable us to purchase more uranium from both Kazatomprom, which has already indicated it will make up to 2 million pounds available in addition to our supply agreement, but also in the spot market. This will bring our total physical uranium holdings to well over 15 million pounds, or over 10% total annual uranium production. The outlook for uranium remains very positive and the current price a compelling buying opportunity," said Chief Executive Officer Andre Liebenberg.

Current stock price: 266.50 pence

Year-to-date change: up 7.0%

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Yellow Cake PLC Ordinary Shares 281.00 GBX 4.07 -

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