NexGen Energy shares rise on talks with BHP about Rook I project

Investing.com -- NexGen Energy shares traded more than 7.6% higher on Monday after the company confirmed it maintains regular communication with BHP regarding its Rook I uranium mining project in Saskatchewan.

NexGen CEO Leigh Curyer told Reuters that the Canadian uranium miner shares information and maintains an open dialogue with the mining giant about the project. He noted that BHP has acquired a large land parcel near the Rook project in the Athabasca basin.

"We always speak to them. We have a very open dialogue in terms of technical information," Curyer said. He added that BHP wants to increase exposure to politically stable countries in its portfolio.

NexGen began construction of what is planned to be one of the world's largest uranium mines on Thursday. The company plans to raise $1 billion in capital over the next nine months and is evaluating several financing options, including prepayment agreements with utility companies, debt finance, and direct equity in the project.

The report also said that BHP's business development team evaluated NexGen last year under previous CEO Mike Henry. BHP's current CEO Brandon Craig, who assumed leadership on July 1, plans to examine uranium opportunities, according to an investor who spoke on condition of anonymity.

BHP currently produces approximately 5% of global uranium supply as a byproduct at its Olympic Dam copper operations in South Australia. The company is also constructing the world's largest potash mine in Saskatchewan.

You May Also Be Interested In

• Jefferies Reinstates Booz Allen Hamilton (BAH) at Hold
• BofA Securities Downgrades Barclays Plc (BARC:LN) (BCS) to Neutral
• UBS Starts Assembly Biosciences (ASMB) at Buy