Impact: Slightly Positive
NexGen Energy (NXE) announced a private placement of US$110M of unsecured convertible debentures with existing key shareholder Queen’s Road Capital Investment Ltd. (TSX:QRC, Not Rated) and Washington H Sole Pattinson Ltd. (ASX:SOL, Not Rated). Additionally, WHSP has agreed to purchase 8.7M NXE shares from QRC, to help fund the latter’s purchase of the debentures. We see this debt agreement as being all about continuing to move the Rook I uranium project forward while waiting for completion of the Provincial Environmental Assessment Technical Review and submission of its final EIS to the Gov’t of SK. We suspect this will help fund ongoing permitted pre-construction site works such as road improvement, bridge installation, airstrip, permanent and construction camp expansion and associated infrastructure, and ground prep work around the future location of the two mine shafts. The goal is for construction to hit the ground running once final permits are obtained. A 30-day Provincial public review is anticipated to begin around 2-Sep-23 for the EA (read note). It is also completing Federal technical and public review comments now.
