The proposed uranium exploration company will have an estimated cash balance of more than C$55m ($40.47m) on the completion of the deals
92 Energy and Latitude Uranium to be acquired by ATHA Energy. (Credit: Herbert Aust from Pixabay)
ATHA Energy has signed two separate deals to acquire exploration-stage uranium companies 92 Energy (92E) and Latitude Uranium in a move to create a uranium exploration company.
Based in Canada, ATHA Energy is a mineral exploration company focused on the acquisition, exploration, and development of mineral resource properties.
The company is the holder of the largest cumulative exploration package in each of the Athabasca Basin and Thelon Basin.
In line with the deal, ATHA Energy has signed a definitive arrangement agreement with Latitude Uranium, under which shareholders of the latter will receive 0.2769 of a common share of ATHA Energy for each Latitude Uranium share held.
The implied consideration per Latitude Uranium share is C$0.28 ($0.21), representing a premium of 68% to Latitude Uranium’s closing price on 6 December 2023.
Following the closing of the Latitude Uranium acquisition, the shares of Latitude Uranium will be de-listed from the Canadian Securities Exchange (CSE).
Latitude Uranium is focused on the Angilak uranium project in Nunavut, Canada and the CMB uranium project in Newfoundland and Labrador, Canada.
ATHA Energy CEO Troy Boisjoli said: “By combining highly complimentary 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 maximise the value of this opportunity.”
Under the binding scheme implementation deed (SID) signed between ATHA Energy and 92 Energy, shareholders of 92 Energy will receive 0.5834 of an ATHA Energy share for 92 Energy for each share held. It is conditional on the SID becoming effective.
The implied consideration per 92 Energy share is C$0.58 ($0.43). This represents a premium of 78% to the exploration stage uranium company’s closing price on 7 December 2023.
Upon the completion of the implementation of the SID, 92 Energy will be removed from the official list of the Australian Securities Exchange (ASX).
The combined company will possess exposure to 7.1 million acres of exploration acreage spread across Canada’s three uranium jurisdictions.
Besides, the proposed uranium exploration company will have an estimated cash balance of more than C$55m ($40.47m) on the completion of the deals.
92 Energy CEO Siobahn Lancaster said: “This merger helps realise the true value of 92E assets, while combining three excellent teams that have the resources to pursue uranium exploration at an unprecedented scale.”
Subject to the satisfaction of certain conditions, the transaction between ATHA Energy and Latitude Uranium is anticipated to be completed in Q1 2024.
The ATHA Energy-92 Energy transaction is expected to be implemented early in Q2 2024, subject to several conditions.