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Nexgen Energy Ltd T.NXE

Alternate Symbol(s):  NXE

NexGen Energy Ltd. is a Canadian company focused on delivering clean energy fuel for the future. It is engaged in the acquisition, exploration and evaluation and development of uranium properties in Canada. It is focused on optimally developing the Rook I Project. It has a portfolio of highly prospective projects, including its 100% owned Rook I property that is host to the high-grade Arrow Deposit, South Arrow, Harpoon, Bow, and the Cannon area. The Rook I Project is a development-stage uranium project in Canada. The new underground mine and mill development is located in the uranium-rich district of the southwestern area of the Athabasca Basin, located in Saskatchewan. Arrow is a 100% land-based, basement-hosted, and high-grade uranium discovery. The Rook I Project, host of the Arrow Deposit, which is a development-stage uranium project in Canada and is 100% owned by NexGen Energy Ltd. The Rook I property hosts the Harpoon Discovery located 4.7 km northeast of the Arrow Deposit.


TSX:NXE - Post by User

Comment by Greendayon Feb 26, 2021 2:05pm
220 Views
Post# 32672708

RE:Doesn't make sense

RE:Doesn't make sense@ investornot - It's possible that NXE was halted because it didn't have all of the regulatory disclosure approvals submitted yet when the deal was announced (guessing only).

Since warrants were not part of the deal, the brokers may believe that NXE was trading near a short term top and instead chose to discount the offering more than they would have if some warrants had a reasonable chance of getting into the money.

Consider NXE's market cap for example.  It was $1.9B.  It has 300M/lbs of uranium but FCU is next door, has a little more than 100M/lbs and had a market cap of $346M.  That's a difference of nearly $1B on an equvalent basis.  So the brokers probably said that they couldn't do a deal at $5.


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