VANCOUVER, March 25, 2020 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSX: NXE, NYSE MKT: NXE) is
providing an update on the operational and corporate impacts of the
COVID-19 pandemic on its planned activities.
Firstly, the Company is pleased to report that no confirmed or
suspected cases of COVID-19 within the organization have been
identified. Strong measures and proactive steps were
immediately implemented in accordance with those recommended by
Provincial (both B.C. and Saskatchewan) and Federal Health
Authorities. The safety of the Company's employees,
contractors, consultants and communities is always the first
priority. NexGen confirms that all of the assets of the Company
including at the 100% owned Rook I site and the offices (in
Saskatoon and Vancouver) are secure and operational in
accordance with the Federal and Provincial Health Authorities
guidelines.
With the current and forecasted impacts due to COVID-19, NexGen
has conducted a detailed review of all corporate, operational and
community aspects including the planned work programs on the
Feasibility Study ("FS") and Environmental Assessment ("EA"). It is
clear the working environments and practices of the Company and its
key consultants, for an indeterminate period of time, are impacted
in terms of the ability, collectively, to safely complete certain
work programs. As a consequence, the Company has postponed "yet to
commence" work programs associated with both the FS and EA.
Previously commenced "in progress" work programs (including
environmental monitoring and community programs) are continuing
where it has been assessed the function is not impacted by the
current Health Authority guidelines. A rescheduled timeline for the
FS and filing of the Environmental Impact Statement will be
communicated once the Company and its consultants establish a
return to normalized working conditions. In the interim, all
workflows will continue to be optimized in light of the current
health and economic climate.
NexGen's current working capital is approximately $44 million. Since July
2019, the Company has had a very low burn rate after all
FS-related drilling was completed. The focus since that time has
centred on the engineering studies, EA programs and continual
community consultation and engagement. Further, the Company has
considerable flexibility on the timing and amount of expenditures
related to the FS and EA during this interrupted period, and is
well positioned for any period of disruption to ensure the Company
is optimally set to return to normal working environments
immediately.
In the interim, the Company will continue to focus on the
communities with regular consultation and engagement through video
and conference call facilities to advance the solid foundation that
has defined NexGen's culture and approach since prior to drilling
commencing in July 2013.
Leigh Curyer, Chief Executive Officer, commented: "Firstly, we
hope and trust all our industry colleagues, stakeholders,
communities, their families and friends are healthy and continue to
be safe during these unprecedented times. These times necessitate
strong leadership and coordinated efforts across our entire
industry and stakeholders. NexGen is committed to the measures and
guidelines of the public health authorities, ensuring business
disruptions are mitigated where possible and once COVID-19 is
contained, optimally delivering on its objectives and committing to
assist our industry colleagues, stakeholders and communities to
re-establishing their operations.
NexGen's culture and approach is to create as many positive
outcomes as possible no matter the challenge and COVID-19 is no
different in that respect. NexGen is built on a foundation of
resilience and we are all steadfast in our ability to come out of
this challenging period for humanity stronger than ever."
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, the Bow discovery in March
2015, the Harpoon discovery in August 2016 and the Arrow
South discovery in July 2017. NexGen is the recipient of the
PDAC's 2018 Bill Dennis Award and the 2019 Environmental and Social
Responsibility Award.
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 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.