CHAMWE KAIRA
Deep Yellow Limited, the Australian company that is developing the Tumas Project in the Erongo region has revealed its offer of fully paid ordinary shares under its Share Purchase Plan (SPP) received applications for a total of 36.8M shares totalling approximately 45 million Australian Dollars (A$).
“We are delighted with the support shown by our shareholders to back us at this important time in the further development of our company. This SPP, plus the funds from the recently announced A$220M placement, together totalling A$250M, will support our growth strategy, the ongoing development of the flagship Tumas Project in Namibia and the advancement of the Mulga Rock Project in Western Australia. Tranche 1 of the placement has been completed and I have great confidence in completing Tranche 2 of the placement following the general meeting of shareholders on 30 April,” said Deep Yellow’s Managing Director and CEO, John Borshoff said.
Deep Yellow Limited plans to establish a globally diversified, Tier-1 uranium company aiming to produce 10 million pounds of uranium per year.
The company’s projects provide geographic and development diversity with two advanced projects, flagship, the Tumas and the Mulga Rock in Western Australia.
Tumas has a resource of 121 million pounds of uranium oxide, a reserve of 67 million pounds of uranium and Inferred resources of 16.5 million pounds available to further expand the ore reserve base, with potential to add a further 10 years to the current 22-year Life-of-Mine.
The Tumas Definitive Feasibility Study (DFS) completed in February 2023 was undertaken during a period of significant inflationary and supply logistical volatility.
The company expects to make a Final Investment Decision (FID) on the Tumas in the third quarter of 2024 while the Mulga Rock will advance to a definite feasibility study.
Deep Yellow plans further growth through development of its highly prospective exploration portfolio, the Alligator River in Northern Territory, Australia and the Omahola in Namibia.
Deep Yellow believes it is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.
“Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity,” the company said.
