Uranium exploration company Deep Yellow Ltd has announced about its plans to raise $15.6 million through a non-renounceable entitlements issue. The company will issue the shares with the purpose to acquire the uranium interests of Raptor Minerals Ltd, a company incorporated in the British Virgin Islands. This transaction will provide the company with access to some prospective tenements in Namibia.
Deep Yellow will acquire ultimate control of Raptor subsidiary company Reptile Mineral Resources and Exploration (Pty) Ltd, by the initial payment of 2.5 million and issue up to 174 million shares, valuing the acquisition at approximately $26 million. As a part of the transaction, Deep Yellow Ltd must bring its consolidated cash and receivalbles balance to $20 million. Taking into account the company’s current cash position, this will require a cash injection of approximately $9.5 million.
Deep Yellow will offer up to 130.4 million new shares at 12c each to eligible shareholders on the basis of one new share for every five shares held. Offer’s Record Date is November 15, the closing date for receipt of acceptances and applications is December 1. The funds raised are planned to be used to replenish company funds after the acquisition, to support the committed levels of expenditure on exploration programs, and to provide working capital.
Raptor Minerals Ltd has also appointed Mervyn Greene to the Deep Yellow board, where he will join company chairman Leon Pretorius, Martin Kavanagh and Gillian Swaby.