Mining magnate Forrest and Canadian-born Cowin own more than 50% of Queen's Road, which has its registered office in Hong Kong. In its latest presentation the firm says Arrow is the world's largest, high-grade undeveloped uranium deposit and a project that meets its key criteria of being in a safe jurisdiction and near-production.
The $30 million investment is in shares - $15 million placement at C$1.80 - convertible debentures, in line with Queen's Road's model. The debentures have a 7.5% coupon over a five-year term, convertible to about 8.9 million common shares at a price of C$2.34.
NexGen will pay two-thirds of the accrued interest in cash and the balance in scrip pegged at a 20-day volume weighted average price.
A November 2018 preliminary feasibility study ranks Arrow as a "disruptive asset" at the bottom of the industry cost curve with projected average life-of-mine all-in sustaining costs on a by-product basis, of $12.11/lb.
It is expected to produce 25.4Mlb uranium over a nine-year mine life, with capex pegged at C$1.25 billion (US$891 million).
Arrow has an indicated resource of 179.5Mlbs within 1.18Mt grading 6.88% uranium oxide, including a high-grade core of 164.9Mlbs held within 400,000t grading 18.84%.
NexGen is working towards completing a feasibility study later this year.
Shares in the company (NXE:TSX) are up 56% in the past 30 trading days at $1.99, which capitalises it at $717 million (US$511 million).
