{"id":1183937,"date":"2020-05-12T14:32:19","date_gmt":"2020-05-12T19:32:19","guid":{"rendered":"https:\/\/www.mining.com\/?p=1023629"},"modified":"2020-05-12T14:32:19","modified_gmt":"2020-05-12T19:32:19","slug":"nexgen-energy-tees-up-30m-financing-with-queens-road-capital","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1183937","title":{"rendered":"NexGen Energy tees up $30m financing with Queen\u2019s Road Capital"},"content":{"rendered":"<p>NexGen Energy\u00a0(TSX: NXE; NYSE: NXE) has signed a $30 million financing\u00a0agreement with Queen\u2019s Road Capital Investment (TSXV: QRC) and plans to use the funds to advance work at its flagship Arrow deposit, part of the company\u2019s Rook 1 project in Saskatchewan.<\/p>\n<div class='ad-slot' id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {    googletag.display('div-gpt-ad-1561499308230-0');    googletag.pubads().addEventListener('slotRenderEnded', function (event) {        if (event.isEmpty) {            var id = event.slot.getSlotElementId();            var x = document.getElementById(id);            if(x == null) return;            if (x.parentElement.classList.contains('ad-slot')) {                x.parentElement.style.display = 'none';            }\t\t\t\t        }    });});<\/script><\/div>\n<p>\u201cWarren Gilman, chairman and chief executive officer of Queen\u2019s Road Capital, is a long-time shareholder and supporter of NexGen and also joined our board in 2017,\u201d Leigh Curyer, NexGen\u2019s CEO, said in an interview. <\/p>\n<p>\u201cWarren came to us and wanted to invest in uranium, but only wanted to invest in world-class projects and world-class management teams. We met both those criteria.\u201d<\/p>\n<p>A leading financier to the global resource sector, Queen\u2019s&nbsp;Road Capital Investment makes investments in privately held and publicly traded resource companies and acquires and holds securities for both long-term capital appreciation and short-term gains, says the company.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>The financing consists of a $15 million private placement (11.6 million common shares at C$1.80 per share) and $15 million in unsecured convertible debentures<\/p>\n<\/blockquote>\n<\/figure>\n<p>The financing consists of a $15 million private placement (11.6 million common shares at C$1.80 per share) and $15 million in unsecured convertible debentures. The debentures carry a 7.5% coupon over a five-year term and can be converted into about 8.9 million common shares at C$2.34 per share.<\/p>\n<p>\u201cThis agreement is identical to our previous financing agreement for $110 million with CEF Holdings back in 2017,\u201d Curyer said. \u201cWhen you consider the pricing of both agreements at a 5% premium to the 20-day VWAP, I think it speaks very highly to overall financing for NexGen and also Queen\u2019s Road Capital.\u201d<\/p>\n<p>News of the financing on May 11 sent the company\u2019s shares up 3.6% to $2.04, which Curyer said is \u201ca solid indication of the market\u2019s appreciation of this financing agreement.\u201d<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright\"><a href=\"https:\/\/www.northernminer.com\/news\/nexgen-energy-tees-up-us30-million-financing-with-queens-road-capital\/1003816827\/attachment\/the-world-class-core-processing-facility-at-rook-i\/\"><img decoding=\"async\" src=\"https:\/\/www.northernminer.com\/wp-content\/uploads\/2020\/05\/The-world-class-core-processing-facility-at-Rook-I-300x134.png\" alt=\"\" class=\"wp-image-1003816830\"\/><\/a><figcaption>The world-class core processing facility at Rook 1. Image from NexGen Energy.<\/figcaption><\/figure>\n<\/div>\n<p>NexGen Energy is now extremely well-funded with about $75 million in the treasury on the closure of the agreement, he added, \u201cso, we are very well placed to complete the feasibility study for our Arrow deposit by the end of this year, subject to the business returning to normal after the coronavirus outbreak.\u201d<\/p>\n<p>The mining executive also pointed to the investor rights agreement in the transaction, which he said will provide for voting alignment, standstill and transfer restriction covenants for as long as Queen\u2019s Road Capital holds at least 5% of NexGen\u2019s shares on a partially diluted basis, or until there is a change of control.<\/p>\n<p>\u201cThe rights agreement means that the investor and debenture holders will support management and the board in resolutions forwarded to the shareholders,\u201d said Curyer, \u201cwhich is very important for any hostile M&amp;A attention we might receive.\u201d<\/p>\n<p>NexGen\u2019s 100%-owned Arrow deposit has indicated mineral resource of 2.89 million tonnes grading 4.03% U3O8 for 256.6 million lbs. contained U3O8, including a high-grade core of 0.46 million tonnes grading 17.85% U3O8 for 181 million lbs. of U3O8. Inferred resources add 4.84 million tonnes grading 0.86% U3O8 for 91.7 million lbs of U3O8.<\/p>\n<p>Colin Healey, a mining analyst at Haywood Securities said in a research note that NexGen is his top pick in the uranium sector \u201cdue to the disruptive potential of the Arrow deposit.\u201d<\/p>\n<p>\u201cWe continue to be very bullish on NexGen as we believe it controls one of the best undeveloped resources globally, in any commodity,\u201d he stated in his note to clients.<\/p>\n<p>Brian MacArthur of Raymond James increased his target price on NexGen following news of the financing from C$4.00 per share to C$4.25.<\/p>\n<p>Tuesday afternoon, NexGen Energy was trading at $2.10 per share within a 52-week trading range of 76\u00a2 and $2.31 on the TSX.<\/p>\n<p>The company has around 355 million common shares outstanding for a C$756.53-million market capitalization.<\/p>\n<p><em>(This article first appeared in <a href=\"https:\/\/www.northernminer.com\/\"  rel=\"noreferrer noopener\" aria-label=\"The Northern Miner (opens in a new tab)\">The Northern Miner<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NexGen&rsquo;s 100%-owned Arrow deposit has indicated mineral resource of 2.89 million tonnes grading 4.03% U3O8 for 256.6 million lbs. contained U3O8.<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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