VANCOUVER, June 10, 2016 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSXV:NXE,
OTCQX:NXGEF) is pleased to announce that it has closed the
previously announced private placement (the
"Offering") of US$60 million
in aggregate principal amount of unsecured convertible debentures
(the "Debentures") to CEF Holdings Limited and/or affiliates
of its shareholders ("CEF").
Leigh Curyer, Chief Executive Officer, commented: "Closing of
this financing places NexGen with a treasury in excess of
C$100M and based on the current
footprint of Arrow mineralization is budgeted to advance and
optimise Arrow on its development path through to a decision to
construct. I would like to take the opportunity to personally thank
all involved in the execution of this financing milestone for
NexGen. I look forward to delivering regular drilling and
development results from Arrow as we progress this exciting
project."
The Debentures were issued pursuant to investment agreements
entered into between the Company and CEF, and a trust indenture
entered into between the Company and Computershare Trust Company of
Canada.
The Debentures have a term of five years and bear interest at a
rate of 7.5% per annum, payable semi-annually in arrears, with 5%
of such interest payable in cash and the remaining 2.5% payable in
common shares of the Company, such shares to be issued at a price
per share equal to the 20-day volume-weighted average trading price
calculated in U.S. dollars (the "20-day VWAP") prior to the
date each such interest payment is due.
The Debentures are convertible at the holder's option into
common shares of the Company at a conversion price of US$2.33, representing a 30% premium to the 20-day
VWAP prior to the announcement of the Offering.
Proceeds from the sale of the Debentures will be used to fund
the continuing exploration and development of the Company's SW2
properties (which includes the Rook 1 project and the Arrow
deposit) and for general corporate purposes. The development
initiatives at Arrow include detailed engineering, environmental
and permitting studies in conjunction with continued definition and
expansion drilling.
An establishment fee of 3% of the aggregate principal amount of
the Debentures was paid in connection with the Offering. Such
fee was satisfied by the issuance to CEF of 1,005,586 common shares
of the Company, at a deemed price of US$1.79 per share based on the 20-day VWAP prior
to the announcement of the Offering.
Pursuant to applicable securities laws, all securities issued in
connection with the Offering will be subject to a hold period of
four months plus one day following the closing of the Offering.
Advisors
TD Securities Inc. acted as financial advisor and lead placement
agent. Farris, Vaughan, Wills & Murphy LLP acted as
Canadian legal counsel to NexGen. CIBC World Markets Inc.
acted as financial advisor to CEF. Stikeman Elliott acted as
Canadian counsel to CEF.
About CEF
CEF Holdings Limited is owned 50% by CK Hutchinson Holdings Ltd.
and 50% by CIBC. CK Hutchinson Holdings is the
publicly-listed flagship company of the CK Hutchinson Group of
companies, the Hong Kong based
multi-national conglomerate with a combined market cap of the Group
in excess of $100 billion as of
December 31, 2015. CIBC is a
leading Canadian-based global financial institution with operations
around the world. CEF is an investigator in significant
resource assets on a global basis.
About NexGen
NexGen is a British Columbia
corporation with a focus on the acquisition, exploration and
development of Canadian uranium projects. NexGen has a highly
experienced team of uranium industry professionals with a
successful track record in the discovery of uranium deposits and in
developing projects through discovery to production.
NexGen owns a portfolio of highly prospective uranium
exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100%
interest in Rook I, location of the Arrow Discovery in February
2014. The Arrow Deposit's maiden inferred mineral resource
estimate is 201.9 M lbs U308 contained in 3.48 tonnes grading 2.63%
U308. Rook I also hosts the Bow Discovery which is 3.7 km
along trend and northeast of Arrow and was made in March 2015.
The TSXV has neither approved nor disapproved the contents of
this press release. Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
Forward-Looking Information
This news release
contains "forward-looking information" within the meaning of
applicable Canadian securities laws. Forward-looking information
includes, but is not limited to, statements which respect to the
activities, events or developments that the Company expects or
anticipates will or may occur in the future, including, without
limitation, the use of proceeds from the Debentures and development
initiatives at Arrow. Generally, but not always, forward
looking-information and statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negative connotation thereof or variations of
such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connation thereof.
Such forward-information and statements are based on numerous
assumptions, including among others, that the results of planned
exploration activities are as anticipated, the price of uranium,
the anticipated cost of planned exploration activities, that
general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed and on reasonable terms, and that third party
contractors, equipment and supplies and governmental and other
approvals required to conduct the Company's planned exploration
activities will be available on reasonable terms and in a timely
manner. Although the assumptions made by the Company in providing
forward-looking information or making forward-looking statements
are considered reasonable by management at the time, there can be
no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, pending assay
results may not be consistent with preliminary results, discretion
in the use of proceeds, alternative sources of energy, aboriginal
title and consultation issues, reliance on key management and other
personnel, potential downturns in economic conditions, actual
results of exploration activities being different than anticipated,
changes in exploration programs based upon results, availability of
third party contractors, availability of equipment and supplies,
failure of equipment to operate as anticipated, accidents, effects
of weather and other natural phenomena and other risks associated
with the mineral exploration industry, environmental risks, changes
in laws and regulations, community relations and delays in
obtaining governmental or other approvals.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. NexGen undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
SOURCE NexGen Energy Ltd.