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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.