Yellow Cake PLC (LON:YCA) is raising £25.9mln, increased from £22.9mln, through a share placing in order to fund the purchase of at least 1mln pounds of uranium.
The company, a vehicle specifically set up to acquire and own physical uranium as an investment strategy, upgraded the funding after the original offer (announced yesterday) saw strong investor demand.
Yellow Cake said that the current uranium price represents a “compelling buying opportunity” as it sees the opportunity to take advantage of power utilities’ currently cautious approach to purchasing ahead of action by the United States, in its investigation into uranium imports.
In a statement on Friday, chief executive Andre Liebenberg said: “We welcome the support from both our existing and new shareholders to enable us to increase the size of our fundraising and consequentially to now purchase 1.175 mmlb of uranium at the firm price of US$25.88 per pound.
“The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price.
“We are very confident in the long term fundamentals of the uranium market, where a combination of constrained supply, the run-off of long term contracts and growing demand outlook means we remain confident on the outlook for the uranium price.”
Source: Proactive Investors UK
