Vancouver-based NexGen Energy (TSX: NXE) has entered an agreement with Queen’s Road Capital Investment and Washington H Soul Pattinson and Company that will raise US$110 million in unsecured convertible debentures to support development of the Rook I uranium project in northwestern Saskatchewan.
The debentures will be convertible at the holder’s option into approximately 22million common shares of NexGen, with the actual number of common shares dependent on the exchange rate at the time of conversion.
In addition, Washington H Soul Pattinson has agreed to purchase 8.7 million outstanding common shares of NexGen from Queen’s Road to partially fund Queen’s Road’s purchase.
Rook I is a proposed new uranium mine and mill development is the largest development-stage uranium project in Canada and is in the uranium-rich district of the southwestern area of the Athabasca Basin near Patterson Lake in Saskatchewan.
NexGen CEO Leigh Curyer said permitted pre-construction site work was already well advanced.
NexGen recently completed a provincial environmental assessment technical review and submitted a final provincial environmental impact statement to the Saskatchewan Ministry of Environment for the project.