SPP Closes Bringing Total Funds Raised to $11.2 Million
Perth, July 3, 2019 AEST (ABN Newswire) - Deep Yellow Limited (
ASX:DYL) (JMI:FRA) (DYLLF:OTCMKTS) refers to its recently announced capital raising and is pleased to advise that, in addition to the successful $9 million placement (Placement), the Company's Share Purchase Plan (SPP) has closed with subscriptions for 5,411,985 ordinary shares raising a further $1,677,700.
Under the terms of the SPP, the Board reserved the right to place any shares not subscribed for by eligible shareholders (Shortfall) to qualified investors as a separate placement. The Company is pleased to advise that, with the assistance of Aitken Murray Capital Partners, certain institutional and sophisticated investors who participated in the Placement have confirmed applications for a further 1,973,571 shares on the same terms as the SPP to raise a further $611,807 (Shortfall Placement).
The placement of the Shortfall was restricted only by the limit available under the Company's 15% placement capacity as determined by ASX Listing Rule 7.1. Accordingly, the Company will use the balance of its placement capacity to facilitate the Shortfall Placement and these shares will be issued in due course on receipt of cleared funds.
Closure of the SPP together with commitments for the Shortfall Placement will bring total funds raised by the Company, including the placement, to $11.29 million before costs. These funds will enable the Company to meet its short-term working capital requirements and to continue advancing the Company's well-articulated two-limbed growth strategy, namely to further expand the existing uranium resource base of its Namibian projects; and to evaluate the best approach to advance its project acquisition growth strategy, taking advantage of the current uranium downturn.
The Board thanks those shareholders who participated in the SPP for their continued support.
About Deep Yellow Limited
Deep Yellow Limited (ASX:DYL) (OTCMKTS:DYLLF) is successfully progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company to produce 10+Mlb p.a.
The Company's portfolio contains the largest uranium resource base of any ASX-listed company and its projects provide geographic and development diversity. Deep Yellow is the only ASX company with two advanced projects - flagship Tumas, Namibia (Final Investment Decision expected in 1H/CY24) and MRP, Western Australia (advancing through revised DFS), both located in Tier-1 uranium jurisdictions.
Deep Yellow is well-positioned for further growth through development of its highly prospective exploration portfolio - ARP, Northern Territory and Omahola, Namibia with ongoing M&A focused on high-quality assets should opportunities arise that best fit the Company's strategy.
Led by a best-in-class team, who are proven uranium mine builders and operators, the Company is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.
Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity.
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