Borshoff leads another uranium play

Former Paladin Energy boss John Borshoff has emerged as chief executive of another local uranium-focused company, Deep Yellow.

Mr Borshoff has taken the reigns of Namibia-focused Deep Yellow with immediate effect, replacing Greg Cochran who served as managing director for five years.

Mr Borshoff resigned as managing director of Paladin last year after serving in the position for nearly 22 years.

“Having carefully evaluated the current state of the global uranium sector, I am confident Deep Yellow represents the ideal platform to establish a high quality and strategically positioned uranium company,” Mr Borshoff said.

“I believe this is an unparalleled opportunity to create shareholder value in an out-of-favour asset class.”

The Paladin founder will receive $385,000 per annum plus a sign-on bonus of 30 million shares.

He will also receive a short-term incentive of up to 25 per cent per year of his fee, and a long-term incentive of up to 70 million shares with various hurdle prices.

The Paladin founder’s appointment was announced on the same day Deep Yellow said it had established a relationship with Sprott Group for a $1.42 million investment that will make Sprott the company’s largest shareholder with a 15 per cent stake.

The investment will be made through the placement of 321.6 million shares at 0.44 cents each.

If Sprott’s stake in Deep Yellow grows past 25 per cent, it may put forward a request to seek a dual listing on the TSX Venture Exchange.

The funds raised from the Sprott investment will be used to bolster Deep Yellow’s balance sheet and to review the uranium sector to evaluate growth opportunities.

“I look forward to working with the Deep Yellow board and Sprott to leverage the company’s Namibian assets, and take advantage of the inevitable growth opportunities that will occur, in anticipation of a recovery in global uranium markets,” Mr Borshoff said.

Deep Yellow shares were 16.6 per cent lower to 0.5 cents each at 10:20am.