Uranium developer Deep Yellow is gearing up to launch a $250 million capital raise to fund uranium project development.
Majority of the proceeds are intended to fund the development of Deep Yellow’s Tumas uranium project located about 80km east southeast from Swakopmund and 80km east northeast from Walvis Bay in Namibia.
The $250 million raise will reportedly comprise a $220 million placement and a $30 million share purchase plan.
According to Deep Yellow’s definitive feasibility study review from last December, the Tumas project will process 4.15 million tonnes of ore per annum, yielding uranium and vanadium products.
Tumas is also backed by a projected annual output of 3.6 million pounds of triuranium octoxide and an estimated 30-year mine life.
Deep Yellow recently reported highly encouraging results from ongoing metallurgical testwork at its Mulga Rock project in Western Australia.
The results were especially welcome amid skyrocketing yellowcake prices. The commodity soared to $US80.25 per pound last November, which was its highest peak since March 2008.
As of March 4, uranium sits at $93.50 per pound, making it the perfect time to invest in uranium project development.
Source: Australian Mining