Uranium Royalty raising $23 million to fund future deals

Uranium Royalty (NASDAQ: UROY) (TSX: URC), the world’s only uranium-focused royalty and streaming company, announced on Friday a bought deal financing worth $22.9 million to fund future royalty acquisitions as well as physical uranium purchases.

A syndicate of underwriters, led by Canaccord Genuity as sole bookrunner, will purchase approximately 6.72 million shares of the company at a price of $3.40 per share. The underwriters will also have a 15% over-allotment option valid for 30 days.

The financing represents the second of its kind carried out by Uranium Royalty over the past four months. Last October, it arranged a $30 million bought deal that priced its shares at $2.94 each.

The company’s most notable acquisition over the past year was a portfolio of royalties on US-based uranium assets from Anfield Energy (TSXV: AEC) for cash consideration of $1.5 million.

Included in the portfolio were royalties on three conventional uranium mining projects located in Utah: the San Rafael project operated by Western Uranium & Vanadium (CSE: WUC), the Whirlwind project and the Energy Queen project, both operated by Energy Fuels (TSX: EFR).

Also included was an in-situ recovery project, the Dewey Burdock located in South Dakota, operated by enCore Energy (NASDAQ: EU) (TSXV: EU).

The company, which became public in December 2019, now holds a portfolio of more than 20 royalties on uranium projects across the US and Canada.

Shares of Uranium Royalty were down 7.5% by 11:40 a.m. ET on the NASDAQ. The stock traded at $3.30, within a 52-week range of $1.81 and $3.76, capitalizing the company at $372 million.