NexGen in Talks with BHP for $1 Billion Uranium Mine Financing

en.Wedoany.com Reported - On August 17, Canadian uranium developer NexGen Energy said it remains in discussions with BHP regarding the Rook I uranium project in Saskatchewan and plans to raise $1 billion in construction funding over the next nine months. Financing options may include prepayments from utility companies, debt financing, and the introduction of project equity investors.

NexGen CEO Leigh Curyer said the company communicates with BHP on a regular basis and shares technical data on the Rook I project with it. BHP previously acquired a large tract of land near the project in Canada's Athabasca Basin. However, the disclosures from both parties so far only involve ongoing communication, with no investment or equity cooperation agreement yet in place, and BHP has not commented on the discussions.

Construction of the Rook I project commenced on August 13. The Canadian Nuclear Safety Commission approved its environmental assessment in March of this year and issued NexGen a site preparation and construction license. The license is valid until March 2036 and permits the company to carry out site preparation and construction of the mine and milling facilities, but does not cover commercial operations; a separate operating license will still be required before the project can begin production.

Rook I is wholly owned by NexGen, with the Arrow underground uranium deposit as its core asset. The company's feasibility study projects a mine life of approximately 11 years, with cumulative production of about 234 million pounds of triuranium octoxide. The updated development plan indicates a maximum annual production capacity of roughly 30 million pounds, and NexGen plans to achieve first production around 2030.

When NexGen updated the project's economic assessment in 2024, it raised the capital expenditure estimate by approximately C$900 million compared to the 2021 feasibility study. The $1 billion planned to be raised will be secured through a variety of financing instruments. BHP currently produces uranium through its Olympic Dam copper-uranium mine in Australia, accounting for about 5% of global supply, and its engagement with NexGen shows that major diversified miners are continuing to evaluate investment opportunities in the uranium sector.