Issues 250 mln usd worth of convertible debentures (Il Sole 24 Ore Radiocor) - Toronto, 08 May - The Canadian uranium company NexGen Energy said that it has entered into a binding term sheet with MMCap International for the purchase of 2,702,410 pounds natural uranium concentrate for an aggregate purchase price of 250 million US dollars.

NexGen added that it has agreed to issue 250 million dollars of unsecured convertible debentures. The debentures will be convertible at the holder's option into approximately 23 million common shares of NexGen equivalent to 4.3% of the company's issued and outstanding Common Shares.

Upon closing of the previously announced Australian Chess Depository Interest offering, as well as the transaction with MMCap, NexGen will have about 600 million Canadian dollars in cash and 250 million US dollars worth of physical uranium on its balance sheet.

"At a time when available physical uranium is extremely tight and expected to continue to be scarce given the long-term supply deficit, this purchase represents a strong opportunity for the Company to bolster its marketing discussions and optimises the optionality of project financing structures under evaluation," said the CEO, Leigh Curyer.

The debentures will carry a 9.0% coupon over a five-year term. They will be convertible into common shares at a price of 10.73 US dollars per share.

Two-thirds of the interests, or 6% per year, are payable in cash and one-third is payable in common shares.

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(RADIOCOR) 08-05-24 13:19:42 (0382) 5 NNNN