The Boss Energy Ltd (ASX: BOE) share price is under pressure on Thursday.
In morning trade, the uranium developer's shares are down 5% to $3.93.
Why is the Boss Energy share price falling?
As we covered here yesterday, Boss Energy requested a trading halt this week so it could raise funds for a "material acquisition."
This morning, the company revealed that it has successfully raised $205 million through a single tranche placement at a modest 4.8% discount of $3.95 per new share.
Management advised that the offer received strong demand from both existing shareholders as well as a number of new domestic and global institutional investors.
What is the material acquisition?
According to the release, the company has entered into a master transaction agreement with enCore Energy Corp (NYSE: EU) to acquire a 30% stake in the Alta Mesa In Situ Recovery (ISR) Project in South Texas for US$60 million cash.
The release notes that the Alta Mesa Project has 3.41 million pounds at 0.109% U3O8 measured and indicated and 16.97 million pounds at 0.120% U3O8 inferred N.I. 43-101 compliant resources.
In addition, it has significant exploration growth potential and drying capacity to expand the 1.5Mlb capacity plant after expected recommencement of production in the first half of 2024.
The agreement also includes a technology collaboration, an exclusive Australian licence to Boss Energy for enCore's Prompt Fission Neutron (PFN) tool technology, a US$10m equity investment into enCore, and a physical uranium loan from Boss Energy to enCore.
Boss Energy's Managing Director, Duncan Craib, said:
It is a very exciting time for Boss Energy as it moves to become a multi-mine In-Situ Recovery (ISR) uranium producer by 1H 2024. We are extremely pleased with the outcome of the capital raising and we are grateful for the support of our existing and new shareholders.
The proceeds will be used to drive Boss Energy's multi-pronged growth strategy, with significant exploration spend and work towards expanding production capacity at Honeymoon.
The Boss Energy share price is up approximately 80% over the last 12 months.