Exploration/Development, Finance, News, Uranium

Deep Yellow taps investors for $220 million


Uranium miner Deep Yellow has received commitments to raise $220 million to fund its flagship Tumas project in Namibia.

Tumas is an open pit uranium project in Namibia, South Africa, with an impressive 88.4 million tonnes of reserves. The company recently completed a re-costing study for the project, which reduced capital expenditure from a total of $US385.1M ($566.3 million) to $US360.5 million ($530.1 million).

A final investment decision for Tumas is expected in the third quarter of 2024. Thanks to the recent round of funding, construction can commence following the decision.

A further $30 million is set to be raised through a share purchase plan at $1.225 per share.

Funding will also go to progressing development activities at the Mulga Rock project in Western Australia.

“The Tumas Project represents a long-life high-quality asset timed to deliver into what is a supply constrained market,” Deep Yellow managing director and chief executive officer John Borshoff said.

“The Mulga Rock project is next in the development schedule and provides a great opportunity to develop our second uranium mine, that will also benefit from integrating the value-adding critical minerals and magnetic rare earth elements associated with these deposits.”

It comes as uranium enjoys a price hike, with the commodity hitting $US93.5 ($141) per pound for the first time in 15 years.

The World Nuclear Association placed global uranium demand for reactors in 2023 at around 65,650 tonnes of elemental uranium (tU). However, by 2040 the Association expects usage to balloon to 87,000 tU at the lower end and 184,300 tU at the higher end.

The bulk of this is driven by the Asia-Pacific region, which has 37 new reactors under construction, accounting for almost 65 per cent of future demand.

Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.

Previous ArticleNext Article
Send this to a friend