REG - Yellow Cake PLC - Notice of General Meeting

Yellow CakeAnnouncement

11/01/2022 07:05

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RNS Number : 9949X  Yellow Cake PLC  11 January 2022

11 January 2022

 

Yellow Cake plc

("Yellow Cake" or "the Company")

Notice of General Meeting

Yellow Cake, a specialist company operating in the uranium sector with a view
to holding physical uranium ("U(3)O(8)") for the long term, is pleased to
announce the publication of a Notice of a General Meeting (the "GM Notice")
and Form of Proxy for the General Meeting on the Company's website
www.yellowcakeplc.com.

The Company's General Meeting ("GM") will be held at St Brelade's Bay Hotel,
La Route de la Baie, St Brelade, Jersey CI, JE3 8EF on Thursday, 27 January
2022 at 10:30am.

Yellow Cake's stated strategy is to buy and hold physical uranium for the long
term and to date the Company has financed its uranium purchases through the
issuance of equity. Accordingly, each year Yellow Cake seeks authority from
its shareholders at its Annual General Meeting ("AGM") to allot and issue new
shares on a non-preemptive basis in order to raise capital for uranium
purchases as well as for its working capital needs. Under the Company's
Framework Agreement with NAC Kazatomprom JSC ("Kazatomprom"), Yellow Cake has
the option to purchase up to US$100 million of U(3)O(8) per year from
Kazatomprom at an undisturbed spot price, through to 2027.

On 29 October 2021, Yellow Cake successfully completed a c.US$150 million
share placing and took advantage of very favourable market conditions for
uranium by utilising the proceeds of the placing to complete the purchase of
an additional US$93 million worth of U(3)O(8) from Curzon Uranium Limited in
November 2021. The Company also expects to complete the purchase of US$43
million worth of U(3)O(8) from Kazatomprom (subject to contract) by June 2022.
Further detail in relation to the placing and use of proceeds is set out in
the announcement issued by the Company on 26 October 2021.

Following this recent share placing, Yellow Cake has substantially utilised
the authorities to allot and issue new shares obtained at its AGM in 2021. The
Company therefore has limited ability to fully exercise its 2022 option with
Kazatomprom and to make further spot market purchases prior to the Company's
2022 AGM, expected to be held in September 2022.

Yellow Cake believes that the uranium market fundamentals are such that
purchasing additional physical uranium could be done on a value accretive
basis. The recently launched Sprott Physical Uranium Trust's ability to raise
capital and purchase spot market uranium and the ongoing supply side
constraints are likely to continue to put pressure on the spot market in the
near term. The directors believe the Company's contract with Kazatomprom has
significant value, particularly in the current tight spot market and having
the ability to fully exercise its 2022 option as soon as market conditions
permit would be value accretive for shareholders.

As a result, the Board is seeking shareholder approval at the GM to renew its
allotment authorities prior to its AGM in September 2022 to ensure that it can
fully exercise its 2022 option with Kazatomprom and to act opportunistically
should it identify further opportunities in the market for the purchase of
additional uranium.

Please note that we intend to hold the GM as a physical meeting. However,
depending on the circumstances applicable at the time, we expect to put in
place certain COVID-19 safety measures at the GM, including the wearing of a
face mask (unless exempt), social distancing and temperature checks. We are
also closely monitoring the developing situation regarding the Omicron
variant, in particular for any potential restrictions on public gatherings and
non-essential travel. Any resulting changes to the GM arrangements will be
communicated to shareholders before the meeting through our website
(www.yellowcakeplc.com) and by RNS announcement.

In any case, in the interests of protecting the health and safety of our
shareholders, directors and other potential attendees, shareholders are
encouraged to appoint the Chair of the GM as their proxy rather than attending
the GM in person. Shareholders can be assured that no business will be
considered at the GM other than the resolutions set out in the Notice of GM.

A hard copy version of the GM Notice and the Form of Proxy will be sent to
those shareholders who have elected to continue to receive paper
communications. Shareholders who have not elected to continue to receive paper
communications will be sent a notification of the availability of the GM
Notice on the Company's website by post or, where they have elected, by email.

Ends

 

 

For further information please visit http://www.yellowcakeplc.com  or
contact:

 

 

Enquiries:

 

 

 Yellow Cake plc
 Andre Liebenberg, CEO                                          Carole Whittall, CFO
 +44 (0) 153 488 5200

 Nominated Adviser and Joint Broker: Canaccord Genuity Limited
 Henry Fitzgerald-O'Connor                                      James Asensio
 Georgina McCooke
 + 44 (0) 207 523 8000

 Joint Broker: Berenberg
 Matthew Armitt                                                 Jennifer Wyllie
 Varun Talwar                                                   Detlir Elezi
 Tel: +44 (0) 203 207 7800

 Financial Adviser: Bacchus Capital Advisers
 Peter Bacchus                                                  Richard Allan
 Tel: +44 (0) 203 848 1640

 Investor Relations: Powerscourt
 Peter Ogden                                                    Linda Gu
 +44 (0) 779 3 85 8211

 

 

ABOUT YELLOW CAKE

Yellow Cake is a London-listed company founded and established by Bacchus
Capital and headquartered in Jersey, which offers exposure to the uranium spot
price. This is achieved through its strategy of buying and holding physical
triuranium octoxide ("U(3)O(8)"). It may also seek to add value through the
acquisition of uranium royalties and streams or other uranium related
activities. Yellow Cake seeks to generate returns for shareholders through the
appreciation of the value of its holding of U(3)O(8) and its other uranium
related activities in a rising uranium price environment. The business is
differentiated from its peers by its ten-year Framework Agreement for the
supply of U(3)O(8) with Kazatomprom, the world's largest uranium producer.
Yellow Cake currently holds 15.83 million lb of U(3)O(8), all of which is held
in storage in Canada and France.

 

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