The combination is expected to create a company with up to 7.1 million acres of exploration acreage in Canada.
December 8, 2023
The combined company is expected to have a cash balance of C$55m without any debt. Credit: RHJPhtotos/Shutterstock.com.
Atha Energy has reached two separate agreements to acquire 92 Energy and Latitude Uranium, two Canadian uranium-exploring companies.
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The company is also planning to raise around C$14m ($10.3m) in concurrent financing to fund the two transactions.
Under the terms of the definitive arrangement agreement with Latitude, Atha shareholders are entitled to receive 0.2769 shares of Atha for each share held.
This is a 68% premium to the stock’s closing price on 6 December 2023.
The swap ratio offered under the binding scheme implementation deed with 92 Energy is 0.5834 shares of Atha for each share of 92 Energy.
This marks a 78% premium to 92 Energy’s stock close on 7 December 2023.
Atha stated that the combined company could provide its shareholders with exposure to 7.1 million acres of exploration area in some of the top three uranium jurisdictions in Canada.
The overall mineral estimate is expected to be 2.8 million tonnes at 0.69% triuranium octoxide (U3O8) containing 43.3 million pounds of U3O8 at the Angilak deposit.
Furthermore, it estimates 14.7 million tonnes at 0.03% U3O8 containing 5.2 million pounds of U3O8 indicated and 28.3 million tonnes at 0.03% U3O8 containing 4.4 million pounds of U3O8 inferred at Moran Lake.
It also estimates 5.1 million tonnes at 0.04% U3O8 containing 4.9 million pounds of U3O8 inferred at Anna Lake, within the Central Mineral Belt of Labrador.
The combined company is expected to benefit from improved liquidity and draw the interest of more institutional investors.
The merged business is forecast to have a cash balance of more than C$55m with no debt.
Assuming that Atha secures the concurrent financing, the company will be able to support its exploration activities well into 2025.
Atha CEO Troy Boisjoli said: “We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium.
“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 maximise the value of this opportunity.”
As part of the concurrent financing, Atha entered an agreement with Eight Capital to act as co-lead agent and joint bookrunner with Canaccord Genuity.
It agreed to issue up to 6.4 million charitable flow-through shares and four million subscription receipts, for total gross proceeds of C$14m.
92 Energy sizing up three-way uranium merger with Canada’s ATHA Energy
Atha Energy has reached two separate agreements to acquire 92 Energy and Latitude Uranium, two Canadian uranium-exploring companies.
Free Buyers Guide
Leading Guide to Mining Survey Systems and Equipment for the Mining Industry
The document includes detailed information on the manufacturers and suppliers and their products, along with contact details, to inform your purchasing decision.Download free guide
The company is also planning to raise around C$14m ($10.3m) in concurrent financing to fund the two transactions.
Under the terms of the definitive arrangement agreement with Latitude, Atha shareholders are entitled to receive 0.2769 shares of Atha for each share held.
This is a 68% premium to the stock’s closing price on 6 December 2023.
The swap ratio offered under the binding scheme implementation deed with 92 Energy is 0.5834 shares of Atha for each share of 92 Energy.
This marks a 78% premium to 92 Energy’s stock close on 7 December 2023.
Atha stated that the combined company could provide its shareholders with exposure to 7.1 million acres of exploration area in some of the top three uranium jurisdictions in Canada.
The overall mineral estimate is expected to be 2.8 million tonnes at 0.69% triuranium octoxide (U3O8) containing 43.3 million pounds of U3O8 at the Angilak deposit.
Furthermore, it estimates 14.7 million tonnes at 0.03% U3O8 containing 5.2 million pounds of U3O8 indicated and 28.3 million tonnes at 0.03% U3O8 containing 4.4 million pounds of U3O8 inferred at Moran Lake.
It also estimates 5.1 million tonnes at 0.04% U3O8 containing 4.9 million pounds of U3O8 inferred at Anna Lake, within the Central Mineral Belt of Labrador.
The combined company is expected to benefit from improved liquidity and draw the interest of more institutional investors.
The merged business is forecast to have a cash balance of more than C$55m with no debt.
Assuming that Atha secures the concurrent financing, the company will be able to support its exploration activities well into 2025.
Atha CEO Troy Boisjoli said: “We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium.
“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 maximise the value of this opportunity.”
As part of the concurrent financing, Atha entered an agreement with Eight Capital to act as co-lead agent and joint bookrunner with Canaccord Genuity.
It agreed to issue up to 6.4 million charitable flow-through shares and four million subscription receipts, for total gross proceeds of C$14m.
92 Energy sizing up three-way uranium merger with Canada’s ATHA Energy
ASX News,
Jonathon Davidsonjonathon.davidson@themarketherald.com.au
08 December 2023
The Gemini project, Canada. Source: 92 Energy
92 Energy (ASX:92E) is looking at a three-way merger with a Canadian company
ATHA Energy wants to buy 100 per cent of 92 Energy
92 Energy (ASX:92E) is looking at a three-way merger with a Canadian company
ATHA Energy wants to buy 100 per cent of 92 Energy
It also intends to acquire a third company called Latitude Uranium
The merger would see the company cashed up with $70 million and more than 7 million acres of landholding
92 Energy is ultimately hopeful the merger will ATHA develop its Gemini discovery
92E shares are up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT
Uranium miner 92 Energy (ASX:92E) has confirmed it’s sizing up a three-way merger between itself and Canada-listed ATHA Energy Corp.
At the same time, ATHA wants to buy up a second company called Latitude Uranium. Canadian courts have approved that deal.
That would see 92 Energy taking part in a three-way merger calculated to deliver a 78 per cent premium to 92E’s existing shareholders.
92 Energy shareholders are to receive 0.58 ATHA shares for every 92E share held – equalling roughly 65 cents per share. 92E’s Board is recommending shareholders greenback the merger.
“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,” 92 Energy Managing Director Siobhan Lancaster said.
ATHA wants 100 per cent of 92 Energy and so in that regard domestic shareholders don’t need to look at the complexity of the full deal.
What 92 Energy sees as valuable in the proposal is the consequent establishment of a Canada-based uranium exploration company beefed up enough to develop 92E’s Gemini discovery.
All three companies together would have more than C$64 million (A$71.3 million).
“We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium,” ATHA CEO Troy Boisjoli.
But the merger would see 92 Energy “maintaining exposure to Gemini through a Canadian-listed vehicle,” it announced today.
It would also put 92 Energy in a corporate club with more than 7 million acres of exploration tenure.
92E shares were up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT.
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