FP/wire say Li doubles down on NexGen Energy

Alpha Stox July 31, 2017 Comments Off
FP/wire say Li doubles down on NexGen Energy

The Financial Post reports in its Saturday edition that Li Ka-shing is not fazed by a commodity that has been on the skids for five years. A Bloomberg dispatch to the Post reports that Mr. Li recently doubled down on his investment in Canadian uranium explorer NexGen Energy. NexGen rallied Friday after announcing $110-million (U.S.) in financing from CEF Holdings, which is 50 per cent owned by Mr. Li’s CK Hutchinson Holdings. That follows a previous deal for $60-million (U.S.) a year ago. NexGen chief executive officer Leigh Curyer says: “It’s a very strong validation from Li of the need for nuclear power in that part of the world. Uranium prices are at historic lows, and the world’s top two producing miners are experiencing economic difficulties — that means the price of uranium has to rise.” Under the deal’s structure, Mr. Li and his son Victor Li also will be allowed to appoint one of the company’s seven board members. “Seriously valuable rock” is how Cormark Securities’ Tyron Breytenbach has described NexGen’s Arrow project in Saskatchewan, considered one of the world’s most promising deposits of the metal used by power plants to produce nuclear energy. NexGen is up 23 per cent this year.

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