92 Energy (ASX:92E) enter a three-way uranium mergerDecember 8, 2023
The deal comes at a 78 per cent premium to 92E’s last closing price and comes alongside a similar offer to Canadian Latitude Uranium, offering multi-project exposure across Canada’s top three uranium jurisdictions and one of the largest exploration portfolios.
The trio believe a merged group offers immediate value at a premium and access to capital with exposure to Gemini, historical resources with district-scale potential, 7.1 million acres of exploration territory, and access to a high-quality team with deep knowledge of the Athabasca and a proven record.
92E Managing Director Siobhan Lancaster said it creates substantial, rapid value for the company’s shareholders.
“The deal will deliver a significant premium to 92E shareholders while also giving them the opportunity to be part of the premier Canadian uranium explorer with outstanding growth potential underpinned by a significant discovery, immense exploration upside, robust funding, highly regarded management and extensive local contact network,” Ms Lancaster said.
ATHA CEO Troy Boisjoli said his company was thrilled to have such an incredible opportunity to create Canada’s premier uranium exploration company during a period of increased nuclear adoption and heightened demand.
“By combining highly complementary exploration assets from across the exploration risk curve in top-tier Canadian mining jurisdictions, we believe the combined entity will own one of the most complete portfolios of uranium assets in the entire sector and are thrilled to be able to leverage the combined team’s technical and financial resources to maximize the value of this opportunity,” Mr Boisjoli said.
And Latitude CEO John Jentz said his team were excited to be part of such a transformative transaction, one which would create an unparalleled opportunity.
“The benefits for LUR shareholders are clear, an immediate increase in value combined with ongoing exposure to one of the most robust portfolios of high-upside uranium assets in the entire sector. The combined company will be fully funded with C$64 million in cash and boasts a suite of highly complementary uranium assets across the exploration spectrum.”
“The combined company will have increased scale and prospectivity and we believe it will be a go-to name in the uranium exploration industry.”
It will still come down to a vote, but 92E’s board unanimously recommend the offer and its two largest shareholders have stated their intentions to vote yes in lieu of a better offer on the table.
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