SASKATCHEWAN – CEF Holdings Ltd. is investing US$60 million in Nexgen Energy of Vancouver to support work on the Arrow uranium deposit at the Rook I project in the Athabasca Basin. CEF and its affiliates have agreed to purchase that amount of unsecured convertible debentures issues by Nexgen.
The debentures will carry a 7.5% coupon over a five-year term. They will be convertible by CEF into common shares of Nexgen at a conversion price of US$2.33, a 30% premium to the 20-day volume weighted average trading price of the shares. Alternately, Nexgen can under certain circumstances redeem the debentures at par plus accrued and unpaid interest.
Including the proceeds from the debentures, NexGen says it has cash reserves of C$100 million. The money will be used primarily for detailed engineering, environmental and permitting studies as well as continued drilling at the Arrow deposit. Nexgen estimated in January the inferred Arrow resource to be 3.48 million tonnes grading 2.63% U3O8 containing 201.9 million lb of uranium dioxide.
A closer look at the Rook I project and Arrow deposit may be had at www.NexgenEnergy.ca.