Deep Yellow secures funds for uranium project

Perth-based Deep Yellow has secured $40.8 million from investors to progress the development of a uranium project in Namibia.

Deep Yellow, which owns three uranium assets, will use the proceeds to complete a definitive feasibility study associated with its flagship Tumas project, expected by mid-late 2022.

The proceeds will also go towards ongoing exploration and resource enhancement programmes at Deep Yellow's wholly owned Reptile project and Nova joint venture with Japanese government agency JOGMEC.

Deep Yellow is also considering project acquisitions, as part of its dual-pillar expansion strategy.

Managing director John Borshoff said the raising placed Deep Yellow in a strong financial position. Its balance sheet will reach $50 million, post placement.

“This impressive raising places Deep Yellow in a very strong financial position to advance our stated and differentiated growth strategy to propel the company into the top league of aspiring uranium developers,” Mr Borshoff said.

“We now turn our attention to the completion of the Tumas DFS, along with advancing targeted M&A opportunities, as we continue to progress towards our primary objective of creating a 5- to 10-million-pound low-cost, multi-project, global uranium company.”

Deep Yellow will issue 62.8 million shares under the placement, priced at 65 cents each. The company seeks to raise an additional $2 million from a share purchase plan, also priced at 65 cents.

Euroz Hartleys and NSW-based Aitken Murray Capital Partners acted as joint lead managers to the raising.

Shares in Deep Yellow closed down 17 per cent to trade at 70 cents.