NexGen Energy Ltd. Closes $11.5 Million Bought Deal Financing including over-allotment
November 12, 2014
VANCOUVER, Nov. 12, 2014 /CNW/ - NexGen Energy Ltd. (NXE:TSXV) ("NexGen" or the "Company") is pleased to announce that it has completed its previously announced bought deal offering, including the exercise in full of the over-allotment option (the "Offering"), raising aggregate gross proceeds of $11,500,000. Pursuant to the Offering, 25,000,000 flow through shares ("Flow Through Shares") of NexGen were issued at a price of $0.46 per share. The Flow Through Shares are subject to a four month hold period expiring on March 13, 2015.
The proceeds received by the Company from the sale of the Flow-Through Shares will be used for its upcoming 2015 drilling and exploration program at its Rook I project, Athabasca Basin, Saskatchewan, location of the Arrow Discovery. The land based Arrow discovery covers a 515m x 215m mineralized zone commencing 100m from surface down to 730m and is open in every direction. 30 of the 32 holes drilled to date at Arrow, have intersected uranium mineralization. Most noticeably AR-14-30 (see news release dated October 6, 2014) which returned a composite grade thickness of 909, inclusive of a continuous zone of 46 meters @ 10.32% U3O8, ranking it as one of the best drill holes in the Athabasca Basin. The winter drilling program will commence early January 2015.
The Offering was led by Cormark Securities Inc., on behalf of a syndicate of underwriters including Dundee Securities Ltd, Cantor Fitzgerald Canada Corporation and Edgecrest Capital Corporation (collectively, the "Underwriters"). In connection with the Offering, the Underwriters received a cash commission equal to 6.0% of the gross proceeds raised under the Offering.
The Company has also issued 129,186 common shares to Garrett Ainsworth, the Vice-President, Exploration and Development for the Company, in consideration for services rendered, at a deemed price of $0.46 per common share. These shares are also subject to a four month hold period.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada.
NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook 1, location of the Arrow Discovery, and an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto's Roughrider Deposit.
The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as "will" and planned" and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company's expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company's current exploration activities can be achieved and that its other corporate activities will proceed as expected; that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner.
Although the assumptions made by the Company in providing forward looking information are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks; changes in laws and regulations; community relations; and delays in obtaining governmental or other approvals or financing. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. NexGen undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE NexGen Energy Ltd.