Sprott Uranium Trust seeks to raise up to $3.5 billion to buy more uranium
(Kitco News) - Sprott Physical Uranium Trust (SPUT) today announced the filing of a Restated Base Shelf Prospectus and an updated At-The-Market equity program.
According to a press-release, SPUT may now issue up to US$3.5 billion of units in Canada during a 25-month period starting August 10, 2021.
SPUT said that it has already approached its previous ceiling of US$1.3 billion and that since launching the At-The-Market offering, SPUT has issued 87 million units for gross proceeds of approximately US$987 million.
The Trust added that At-The-Market program has also been updated, which will provide another US$1.2B worth of units available for distribution by its Agents.
Experts from Red Cloud Securities view the potential for SPUT to raise further funds as very good news for the entire uranium sector and anticipate uranium equities to react very positively to this news.
SPUT said it now holds approximately 40 million pounds of physical uranium on behalf of its clients, which is roughly 25% of the world's nuclear power reactors requirements in 2021, according to the World Nuclear Association.
Importantly, spot uranium prices have rallied more than 50% since SPUT began building inventories several months ago.
"We continue to experience strong investor demand for units of the Sprott Physical Uranium Trust on growing recognition that nuclear power generates reliable baseload energy while helping to meet de-carbonization goals," said John Ciampaglia, CEO of Sprott Asset Management.
SPUT, which is the world's largest physical uranium fund, invests and holds substantially all of its assets in uranium in the form of U3O8. Its goal is to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding uranium.