NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is providing an update on the operational and corporate impacts of the COVID-19 pandemic on its planned activities.
Firstly, the Company is pleased to report that no confirmed or suspected cases of COVID-19 within the organization have been identified. Strong measures and proactive steps were immediately implemented in accordance with those recommended by Provincial (both B.C. and Saskatchewan) and Federal Health Authorities. The safety of the Company’s employees, contractors, consultants and communities is always the first priority. NexGen confirms that all of the assets of the Company including at the 100% owned Rook I site and the offices (in Saskatoon and Vancouver) are secure and operational in accordance with the Federal and Provincial Health Authorities guidelines.
With the current and forecasted impacts due to COVID-19, NexGen has conducted a detailed review of all corporate, operational and community aspects including the planned work programs on the Feasibility Study (“FS”) and Environmental Assessment (“EA”). It is clear the working environments and practices of the Company and its key consultants, for an indeterminate period of time, are impacted in terms of the ability, collectively, to safely complete certain work programs. As a consequence, the Company has postponed “yet to commence” work programs associated with both the FS and EA. Previously commenced “in progress” work programs (including environmental monitoring and community programs) are continuing where it has been assessed the function is not impacted by the current Health Authority guidelines. A rescheduled timeline for the FS and filing of the Environmental Impact Statement will be communicated once the Company and its consultants establish a return to normalized working conditions. In the interim, all workflows will continue to be optimized in light of the current health and economic climate.
NexGen’s current working capital is approximately $44 million. Since July 2019, the Company has had a very low burn rate after all FS-related drilling was completed. The focus since that time has centred on the engineering studies, EA programs and continual community consultation and engagement. Further, the Company has considerable flexibility on the timing and amount of expenditures related to the FS and EA during this interrupted period, and is well positioned for any period of disruption to ensure the Company is optimally set to return to normal working environments immediately.
In the interim, the Company will continue to focus on the communities with regular consultation and engagement through video and conference call facilities to advance the solid foundation that has defined NexGen’s culture and approach since prior to drilling commencing in July 2013.
Leigh Curyer, Chief Executive Officer, commented: “Firstly, we hope and trust all our industry colleagues, stakeholders, communities, their families and friends are healthy and continue to be safe during these unprecedented times. These times necessitate strong leadership and coordinated efforts across our entire industry and stakeholders. NexGen is committed to the measures and guidelines of the public health authorities, ensuring business disruptions are mitigated where possible and once COVID-19 is contained, optimally delivering on its objectives and committing to assist our industry colleagues, stakeholders and communities to re-establishing their operations.
NexGen’s culture and approach is to create as many positive outcomes as possible no matter the challenge and COVID-19 is no different in that respect. NexGen is built on a foundation of resilience and we are all steadfast in our ability to come out of this challenging period for humanity stronger than ever.”
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 uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production.
NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada; including a 100% interest in Rook I, location of the Arrow Deposit discovered in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017. NexGen is the recipient of the PDAC’s 2018 Bill Dennis Award and the 2019 Environmental and Social Responsibility Award.
Source: NexGen Energy Ltd