Deep Yellow in N$7.1bn Vimy takeover deal

April 11, 2022

Australia Stock Exchange-listed Deep Yellow, which is developing the Tumas uranium Project in Namibia, has announced a N$7.1 billion proposed merger with Vimy Resources.

Under the terms of the Scheme, each shareholder of Vimy will receive 0.294  Deep  Yellow  ordinary  fully  paid  shares   for  every  ordinary  fully  paid  Vimy  share held on the Scheme record  date.

If the Scheme is approved  and  implemented,  Deep  Yellow  shareholders  will  hold  53%  of the  Merged  Group  and Vimy Shareholders will hold 47% of the Merged Group, in both cases on a fully diluted basis.

The merger is expected to create a new global uranium player with significant scale, cash resources of N$1.1 billion, one of the largest uranium mineral resource inventories globally of N$7.4 billion, and two advanced, world class assets in Tier-1 uranium mining jurisdictions.

“This Merger has the potential to be a significant value-creating opportunity for both Deep Yellow and Vimy Shareholders. 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,” said John Borshoff, Managing Director and Chief Executive Officer of Deep Yellow.

A prefeasibility study last year of Deep Yellow’s Tumas project, estimated that it could produce 2.5-million pounds of uranium oxide over a mine life of 11.5-years, at an initial capital cost of N$1.4 billion.

“This Merger de-risks and underpins our 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,” Steven Michael, Managing Director and Chief Executive Officer of Vimy said.

Vimy’s uranium assets include the Mulga Rock and Alligator River projects, in Western Australia and the Northern Territory respectively.

Following the merger, the enlarged Deep Yellow will be led by Borshoff as CEO and MD, and Deep Yellow’s non executive chairperson Chris Salisbury.

Rate this item
(0 votes)
Last modified on Wednesday, 13 April 2022 16:04

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries