Sprott Physical Uranium Trust Announces A US$1.2 Billion At-The-Market Financing

Demand for physical uranium appears to be picking up again. The Sprott Physical Uranium Trust (TSX: U.UN), which is commonly referred to as SPUT, last night filed a prospectus supplement, indicating it will be conducting yet another round of an at-the-market equity program.

The latest program is pegged at US$1.2 billion, and follows US$1.0 billion and US$300.0 million at-the-market financings conducted in September and August of this year, respectively. Collectively, the additional financing brings the potential for total gross proceeds to an eye-popping US$2.5 billion.

Even more significantly, the Trust has gone even further with its shelf prospectus, electing to increase the total size to that of US$3.5 billion. The increase enables the Trust to conduct another US$1.0 billion financing over the next 25 months without having to amend its base shelf prospectus again.

To date, the Trust indicated it has raised total gross proceeds of US$987 million via its at-the-market offerings, which enabled the purchase of 21.5 million pounds of U3O8 uranium. The entity as a result now holds a total of 39.8 million pounds of U3O8, with the Trust having a total asset value of US$1.93 billion.

The Sprott Physical Uranium Trust last traded at US$11.29 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply