by Greg Klein | November 18, 2015
With a steady stream of high grades emanating from its Rook 1 uranium project, NexGen Energy TSXV:NXE obviously holds the confidence of well-heeled investors. The company announced another $20-million bought deal private placement on November 18. The last one closed on $23.74 million in May. In July the company closed a shares-for-debt deal to extinguish a $1.35-million loan. As of November 3 NexGen reported about $18 million cash on hand.
Rook 1 straddles the Athabasca Basin’s southwestern rim, next door to Fission Uranium’s (TSX:FCU) Patterson Lake South.
The new money would come from 31.25 million shares at $0.64. The underwriters may also buy an additional 15% of the shares sold at $0.64 until 30 days after closing, anticipated to happen around December 9 subject to regulatory approvals.
A 33,000-metre summer program extended Rook 1’s basement-hosted Arrow zone vertically to about 645 by 235 metres, remaining open in all directions. The most recently reported results include 10.09% U3O8 over 27.5 metres (not true width), starting at 492 metres in downhole depth. Included in that interval from A2, one of three high-grade shears, was 20.01% over 12 metres and 51.16% over 2.5 metres.
Other A2 shear results reported last month include the project’s best assays yet, 9.72% over 35.5 metres starting at 494.5 metres, with a Russian doll set of sub-intervals: 80.5% over 0.5 metres, within 72.02% over 3 metres, within 30.61% over 11 metres.
Flush with cash, NexGen has winter drilling scheduled to start in early January and says Rook 1’s maiden resource remains on schedule for release in H1 2016.