Yellow Cake seeks $125 million through share placement for uranium purchase By Investing.com

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<p>London-based Yellow (OTC:) Cake is planning to raise $125 million through a share placement at a 2.2% discount, aiming for GBP103 million. The announcement was made on Wednesday, with trading set to commence on October 2, 2023.</p>
<p>The CEO of Yellow Cake, Andre Liebenberg, has outlined plans to use the funds raised to purchase physical uranium from NAC Kazatomprom. The planned purchase price is $65.50 per pound, notably below the current spot price of $70.50 per pound. This move comes amid rising production costs and an increase in utilities restocking their uranium supplies.</p>
<p>In addition to the uranium purchase, the company intends to allocate extra funds towards working capital, corporate needs, and potential opportunistic purchases of additional uranium if opportunities arise.</p>
<p>Liebenberg highlighted the robust uranium market fundamentals as a driving factor behind this strategic move. “The strong uranium market fundamentals” were emphasized by him as a key reason for the company’s decision to raise funds through share placement and invest in physical uranium.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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<br /><a href="https://www.investing.com/news/stock-market-news/yellow-cake-seeks-125-million-through-share-placement-for-uranium-purchase-93CH-3184544">Source link </a></p><p>The post <a href="https://forextraderhub.com/yellow-cake-seeks-125-million-through-share-placement-for-uranium-purchase-by-investing-com.html">Yellow Cake seeks $125 million through share placement for uranium purchase By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>