Canadian uranium miner NexGen Energy Ltd. is in preliminary talks with BHP Group Ltd. to secure up to $1 billion in financing for its Rook I project in Saskatchewan, two sources familiar with the matter told Reuters.
The discussions, which remain at an early stage, focus on potential equity or debt arrangements to fund the development of the high-grade uranium deposit. Rook I is one of the largest undeveloped uranium projects globally, with an estimated resource base exceeding 200 million pounds of uranium oxide.
NexGen has not formally announced a funding strategy for the project, which is expected to require significant capital investment to reach commercial production. The company has previously outlined plans to develop Rook I as a standalone operation, targeting first production by the mid-2020s.
BHP, the world’s largest mining company, has not commented on the potential deal. NexGen Energy did not respond to requests for comment.
Rook I’s development timeline hinges on securing stable financing, given the capital-intensive nature of uranium mining and the current volatility in commodity markets. The project’s high-grade ore and strategic location in Canada’s Athabasca Basin position it as a key potential supplier amid growing global demand for nuclear fuel.
The talks come as uranium prices remain elevated, supported by long-term supply contracts and a resurgence in nuclear energy investment driven by energy security concerns and decarbonization goals.
