Boss Energy (ASX:BOE) targets $125m capital raise to revive Honeymoon uranium mine – The Market Herald

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  • Boss Energy (BSE) Launches $125 Million Fundraising Consisting of a $120 Million Equity Offering in Two Tranches and a $5 Million Share Purchase Plan (SPP)
  • Approximately 55.8 million new shares will be issued under the placement at a price of $2.15 each, which is also the issue price of the SPP
  • The funds will largely go towards restarting production at its Honeymoon uranium project in South Australia
  • BOE shares hold steady at $2.42

Boss Energy (BOE) is set to undertake a $125 million fundraising consisting of a $120 million equity offering in two tranches and a 5-year share purchase plan (SPP). millions of dollars.

The company said it would use proceeds from the capital raise to help fund the planned development and restart of production at its Honeymoon uranium project in South Australia.

A total of approximately 55.8 million new Boss shares will be issued in the offering in two tranches at a price of $2.15 per share, with the first tranche expected to close on March 18.

The issue price represents an 11.2% discount from the last closing price of $2.42 per share on March 15, a 17.0% discount to the five-day volume-weighted average price (VWAP) and a 14.5% discount on the VWAP day.

The SPP will have the same offering price as the placement at $2.15 per share.

Boss said the bulk of the proceeds from the fundraising will go towards reviving the Honeymoon mine and seeing it eventually become the nation’s next uranium producer.

The company said Honeymoon is a technically proven, low-cost restart uranium project that has historically produced and exported uranium to world markets.

As a licensed mine, Honeymoon was expected to enter service approximately 18 months after development began.

“The fundraiser will ensure that Boss is funded until Honeymoon begins production,” Chief Executive Duncan Craib said.

“We have deliberately structured our financing to maintain a very conservative and strong balance sheet with no debt, $135 million of net cash and an additional $100 million contingency from our existing strategic uranium inventory.

“With the uranium market continuing to recover, Boss to be financed (after fundraising) and Honeymoon having a uniquely short production lead time with all permits in place, Boss will be perfectly positioned to become the uranium producer of choice. for investors and customers.”

BOE shares ended the day’s trading session at $2.42.

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