Interest-free and unsecured notes issued at an 11% premium to the stock price seem like good starting terms. At least they won't be shorting the stock to hedge the interest rate on their notes or sending in receivers and mangers if the company runs into trouble.
Two caveats on the issue price of the notes.
"Should the Company raise further equity prior to conversion of the Note at a price below £0.50 then the conversion price of the Note will be reset to the issue price of the equity raising, subject to a floor price of £0.27 per share."
US$65 million is within their costs for completion so further raisings should be unlikely (but not impossible).
"If Technical Completion has not occurred 4 years after the issue of the Note, then the Note will automatically convert into shares at the lower of £0.50 per share or the last trading price of the Company's shares on AIM at the relevant time, subject to conversion at the floor price of £0.27 per share."
If the stock is trading below
£0.50 in 4 years the mine will have proven to be a dud (ie feasibility cost estimates will have been wrong). I doubt the uranium price will have contributed to any failure of the mine as it can't practically fall much further and BKY have floor prices already locked into forward sales.
Weighted average price of option conversion 85 pence = A$1.38 is a good price looking down the road. These wealth funds have money.
SGRF's right to match the greater of 1 million pounds of U3O8 concentrate per annum or 20% of annual production as long as they hold at least 10% converted equity in the company looks like an option for the Omanis to play the uranium market, possibly sell product to its neighbours.
Emerging nuclear energy countries
http://www.world-nuclear.org/inform...others/emerging-nuclear-energy-countries.aspx
"Oman also investigated nuclear power, joined GNEP, and in June 2009 signed a nuclear cooperation agreement with Russia. However, late in 2008 it said that since most of its demand was peak load, nuclear did not seem appropriate, though investment in a nuclear plant in a neighbouring GCC country was possible. In 2009 it produced 17.8 TWh, mostly from gas."
Eshmun
(20min delay)