The new merged company will control approximately 900km2 of uranium exploration ground in the Macusani Plateau uranium district in south-eastern Peru.

On completion of the merger transaction Macusani’s shareholders will own 65% equity stake in while Southern Andes will hold the remaining 35% interest of the combined entity.

Macusani CEO Peter Hooper over the transaction also provides the flexibility to consider other development scenarios within the district, including the construction of a larger production facility.

Southern Andes president and CEO Nick Tintor said the proposed transaction provides its shareholders with the opportunity to participate in the growth potential of the combined exploration assets in the Macusani district and to realize the value of company’s investment in Caracara.

"This transaction will create a significant uranium exploration company with the management team and balance sheet to realize the full potential of the newly combined project portfolio," Tintor said.

The boards of directors of Macusani and Southern Andes have approved the terms of the transaction.