@bp1990 and I had a chance to get an hour on the phone with David Cates yesterday. All credit to Bart for making it happen. Couple thoughts to share.

It will take a higher premium to NAV for $U.TO to raise than I and I think most of Uranatwit have assumed so far. They will need a mid teen even up to 20% premium before the issue equity to buy lbs.

The reasons:

4-5% discount on a bought deal.
4-5% brokerage costs.
1% fee to DNN
Execution risk

So a 9-10% premium, even if it were to get done at the posted spot price, isn't going to be accretive to shareholders.

All of the incentive to raises lies in the mgmt agreement with DNN (transactional fee and AUM fees), but it's the BoD who makes the call. And the BoD is almost entirely focused on making sure any transactions are done on an accretive basis.

As far as managing execution risk, they could look to take a block of lbs down at a premium to reduce that execution risk and than average that down in the spot market. Kind of interesting.

Another interesting anecdote. He said it took DNN 17 transactions with 12 different counterparties to get 2.5 mln lbs bought.

When they were down to their last 250k to purchase they wanted to get it done in one deal and offered a premium to do so.

No dice. Took 3 trades to get it done.

And they had to take shipments through Oct to get the entire thing done.