Deep Yellow Limited, the mining company, says its share purchase plan (SPP) for the further development of the Tumas Project in Namibia and the Mulga Rock Project in Western Australia has been oversubscribed by N$182 million (A$15 million).
The SPP, which aimed to raise N$264 million (A$30 million before costs), offered a maximum of 24,489,795 shares at an issue price of N$22.64 ($1.225 each). However, the company received applications for a total of 36.8 million shares, amounting to approximately N$545 million (A$45 million).
Due to this oversubscription, Deep Yellow will conduct a pro-rata scale-back of applications, rounding down the final number of shares to whole numbers.
“This SPP, plus the funds from the recently announced A$220 million placement, together totalling A$250 million, will support our growth strategy, the ongoing development of the flagship Tumas Project in Namibia and the advancement of the Mulga Rock Project in Western Australia,” said John Borshoff, Managing Director and CEO of Deep Yellow.
He also mentioned that the company is working on finalising the second tranche of the placement following the upcoming general meeting of shareholders on 30 April.
The company is set to confirm the final number of shares issued and allotted on 15 April 2024. Excess application monies and funds from invalid applications will be refunded without interest.
The company’s share registry is expected to process these refunds by 18 April 2024. Shareholder refunds will be directed to their nominated bank accounts or mailed by cheque to the address listed in the share register if no bank details are provided.
Due to the full subscription of the SPP, eliminating any shortfall, the Board has withdrawn Resolution 3 from the upcoming general meeting on April 30th. This resolution sought shareholder approval to place up to N$180 million ($15 million) to cover any potential SPP shortfall.
The withdrawal of Resolution 3 will not affect the validity of the proxy form for the General Meeting, nor any proxy already submitted in respect of the remaining resolutions to be put to shareholders for approval.
