Shares in uranium junior Toro Energy closed trade on Monday up 38 per cent to 45 cents, following news of a proposed acquisition by dual-listed IsoEnergy.
The company’s price briefly reached a high of 48 cents, its highest price since May 10 last year.
Richard Homsany-chaired Toro told the market it had entered into a scheme implementation deed with Canada-based IsoEnergy, with the proposed acquisition subject to conditions and Toro shareholders approval early next year.
Under the proposal, Toro shareholders would receive 0.036 per common IsoEnergy share, in relation every Toro share held.
With the exchange ratio factored in, the consideration equates to 58.4 cents per Toro share, which marks a 79.7 per cent premium to the junior’s closing price of 32.5 cents on October 10 – with an implied equity deal value of around $75 million.
Toro said should the acquisition be approved, it would further boost IsoEnergy’s development portfolio, given the present situation of Toro’s Wiluna uranium project, coupled by the uranium mining ban currently enforced by the state government.
Mr Homsany said he felt the acquisition would add value for Toro shareholders.
“It also provides Toro shareholders the opportunity to be part of a larger, leading uranium company listed on the Toronto Stock Exchange and New York Stock Exchange.
“Toro shareholders will have exposure to a diverse uranium portfolio that has strong growth potential and is located in favourable regulatory jurisdictions, and the ability to attract enhanced access to funding including for the Wiluna uranium project.
“The Toro team will benefit from the significant financial strength of ISO and looks forward to working together on the successful development of the Wiluna uranium project for all stakeholders.”
These sentiments were echoed by IsoEnergy chief executive, Philip Williams.
“The Wiluna uranium project strengthens our portfolio with a large, previously permitted asset in a top-tier jurisdiction at a time when global nuclear demand is accelerating,” he said.
“This transaction positions IsoEnergy to deliver meaningful scale, optionality, and sustained value creation for shareholders.”
During its recently released annual report, Toro said it had focused heavily on two key priorities – updating the scoping study for a potential standalone Lake Maitland uranium-vanadium deposit, along with re-optimisation of a potential mining pit at Lake Maitland.
As part of the updated scoping study, Toro said Lake Maitland was tipped to have a mine life of 16.3 years, along with substantial uranium and vanadium annually.
