Vimy Resources Limited and Deep Yellow Limited have entered into a Scheme Implementation Deed (SID) under which the two companies propose to merge. Upon implementation of the Scheme, Deep Yellow shareholders will hold 53 per cent of the merged group and Vimy shareholders will hold 47 per cent.
The merger is expected to create a new global uranium player with significant scale, cash resources of $106 million, one of the largest uranium mineral resource inventories globally (389Mlb) and two advanced, world-class assets in Tier 1 uranium mining jurisdictions.
Vimy Managing Director Steven Michael said the merger de-risks and underpins their path to development at Mulga Rock.
“The combined financial, processing and operating strengths of both companies will enable greater optimisation and the delivery of Mulga Rock as well as an established exploration team that can unlock considerable value at Alligator River.
“The merger provides Vimy shareholders the opportunity to share in the expected significant benefits of being part of a larger, geographically diverse merged group, with the expertise to develop the full portfolio of assets in the near term.”
Deep Yellow Managing Director John Borshoff added the merger combines two world-class assets, both in Tier 1 mining jurisdictions, into a single group with scale and know-how.
“The expanded strong technical team of Deep Yellow, together with Vimy personnel, positions us well to bring both projects online when uranium prices support the generation of long-term, sustainable positive cash flows.
“This transaction also builds on the pipeline of exploration assets able to add growth organically and critically, creating a platform for additional value accretive acquisitions.”
Vimy’s flagship project is the Mulga Rock Project, one of Australia’s largest undeveloped uranium resources, which is located 290km by road east north-east of Kalgoorlie-Boulder in the Great Victoria Desert of Western Australia.
Vimy also owns and operates the largest granted uranium exploration package in the world-class Alligator River uranium district, located in the Northern Territory.