VANCOUVER, BC, Feb. 18, 2021 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) is
pleased to announce that the registered holders of the entire
US$120 million aggregate principal
amount of Convertible Debentures (or, the "Indentures") have
provided notice to NexGen and the indenture trustee that they have
elected to convert into common shares of NexGen ("Common Shares")
pursuant to the terms of the trust indentures governing the
Indentures. The registered holders of the Indentures are affiliates
of CEF Holdings Limited and its shareholders ("CEF"). The
Indentures consist of US$60 million
aggregate principal amount of 7.5% unsecured convertible debentures
issued by the Company in 2016 (the "2016 Debentures") and the
US$60 million aggregate principal
amount of 7.5% unsecured convertible debentures issued by the
Company in 2017 (the "2017 Debentures") both due to mature on
July 22, 2022.
Leigh Curyer, Chief Executive Officer,
commented: "We are very pleased CEF have elected to
convert the Indentures early totalling US$120 million into equity. The structure of the
2016/2017 Indentures have been extremely effective from a financing
and strategic perspective which has facilitated NexGen's
development of the Rook I Project in an optimal manner and sets the
stage for NexGen to be a significant producer of clean energy
fuel."
Conversion
Under the terms, the Indentures are convertible into Common
Shares based on the conversion price of US$2.3261 for the 2016, and US$2.6919 the 2017 Debentures. On settlement of
the conversion, CEF will move from 8.7% to ~18.7% of the issued and
outstanding Common Shares of NexGen Energy Ltd.
Other Activities
- As at the date of this announcement and post settlement of the
debenture conversion, the Company has cash-on-hand of ~$55 million;
- The Company is in the final stages of completing the Rook I
Feasibility Study with results scheduled to be released
imminently.
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 prospective uranium exploration assets in the
Athabasca Basin, Saskatchewan, Canada, including a 100%
interest in Rook I, location of the Arrow Deposit discovered in
February 2014 which is in
development.
SEC Standards
Estimates of mineralization and other technical information
included or referenced in this news release have been prepared in
accordance with NI 43-101. The definitions of Proven and Probable
Mineral Reserves used in NI 43-101 differ from the definitions in
SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a
"final" or "bankable" feasibility study is required to report
Reserves, the three-year historical average price is used in any
Reserve or cash flow analysis to designate Reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority. As a result, the Reserves reported by the
Company in accordance with NI 43-101 may not qualify as "Reserves"
under SEC standards. In addition, the terms "Mineral Resource",
"Measured Mineral Resource", "Indicated Mineral Resource" and
"Inferred Mineral Resource" are defined in and required to be
disclosed by NI 43-101; however, these terms are not defined terms
under SEC Industry Guide 7 and normally are not permitted to be
used in reports and registration statements filed with the SEC.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. Investors are cautioned not to
assume that any part or all of the mineral deposits in these
categories will ever be converted into Reserves. "Inferred Mineral
Resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian securities laws, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Additionally,
disclosure of "contained pounds" in a Resource is permitted
disclosure under Canadian securities laws; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "Reserves" by SEC standards as in place tonnage and
grade without reference to unit measurements. Accordingly,
information contained or referenced in this news release containing
descriptions of the Company's mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of
United States federal securities
laws and the rules and regulations thereunder.
Forward-Looking Information
The information contained herein contains "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian securities
legislation. "Forward-looking information" includes, but is not
limited to, statements with respect to the activities, events or
developments that the Company expects or anticipates will or may
occur in the future. 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 connotation thereof. Forward looking
information in this press release includes, but is not
limited to, statements regarding settlement of the conversion of
the Debentures and the CEF Group's continued support and commitment
to the Company.
Forward-looking information and statements are based on the
then current expectations, beliefs, assumptions, estimates and
forecasts about NexGen's business and the industry and markets in
which it operates. Forward-looking information and statements are
made based upon numerous assumptions, including among others, that
the proposed transaction will be completed, the results of planned
exploration activities are as anticipated, the price of uranium,
the cost of planned exploration activities, that financing will be
available if and when needed and on reasonable terms, that third
party contractors, equipment, supplies and governmental and other
approvals required to conduct NexGen's planned exploration
activities will be available on reasonable terms and in a timely
manner and that general business and economic conditions will not
change in a material adverse 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 results, performances and achievements of NexGen to
differ materially from any projections of results, performances and
achievements of NexGen 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 the availability of additional financing, the risk
that pending assay results will not confirm previously announced
preliminary results, imprecision of Mineral Resource Estimates, the
appeal of alternate sources of energy and sustained low uranium
prices, aboriginal title and consultation issues, exploration
risks, reliance upon key management and other personnel,
deficiencies in the Company's title to its properties, uninsurable
risks, failure to manage conflicts of interest, failure to obtain
or maintain required permits and licenses, changes in laws,
regulations and policy, competition for resources and financing,
and other factors discussed or referred to in the Company's Annual
Information Form dated March 11, 2020
under "Risk Factors".
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. The Company
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.
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SOURCE NexGen Energy Ltd.