Published: October 2, 2023 |

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[Click image to enlarge]

Uranium exploration and development company IsoEnergy has agreed to take full ownership of Consolidated Uranium in an all-stock deal that would value the combined company at nearly $669.6 million (C$903.5 million)

Both firms are presently listed on the TSX Venture Exchange in Canada.

According to the terms of the share-for-share merger, Consolidated Uranium’s shareholders will exchange each of their shares in the company for 0.5 of IsoEnergy’s common share.

Following the closing of the transaction, shareholders of IsoEnergy and Consolidated Uranium will hold about 70.5 percent and 29.5 percent of the combined company, respectively, on a fully diluted in the-money basis.

Through the merger, the companies aim to create a globally diversified uranium company with near-term production, development, and exploration projects in top-tier jurisdictions.

The combined company will be driven by high-grade indicated uranium resource located in Canada’s Athabasca Basin and fully-permitted, conventional uranium mines in the U.S., which are poised for a quick restart.

“This merger provides our existing shareholders and new investors with an even greater opportunity to participate in the tremendous upside potential of our asset portfolio at a time when sentiment and support around the nuclear sector and the uranium industry in particular are increasingly positive,” said IsoEnergy President and CEO Tim Gabruch.

The enlarged company will get the backing of corporate and institutional investors such as Energy Fuels, Mega Uranium, NexGen Energy, and uranium exchange-traded funds (ETFs).

Established in early 2020, Consolidated Uranium is currently developing a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado.

The company has a toll milling arrangement in place with U.S.-based uranium mining company Energy Fuels.

“The asset portfolios and culture of our two companies are complementary and, together, provides our respective shareholders with exposure to a larger company that consists of a proven leadership team, a strong pipeline of development and exploration growth prospects as well as an enhanced position within capital markets,” said Consolidated Uranium Chairman and CEO Philip Williams.

The transaction will be executed by a court-approved plan of arrangement pursuant to the Business Corporations Act (Ontario). This will be subject to Ontario Superior Court of Justice (Commercial List) approval and other approvals, including that of shareholders of both firms.

Source: NS Energy

IsoEnergy is a well-funded uranium exploration and development company with a portfolio of prospective projects in the infrastructure-rich eastern Athabasca Basin in Saskatchewan, Canada. In 2018, IsoEnergy discovered the high-grade Hurricane Deposit on its 100 percent owned Larocque East property in the eastern Athabasca Basin. The Hurricane Deposit is 100 percent owned by IsoEnergy and is unencumbered from any royalties. IsoEnergy is led by a board and management team with a track record of success in uranium exploration, development, and operations. IsoEnergy was founded and is supported by the team at its major shareholder, NexGen Energy Ltd.

Consolidated Uranium was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, Consolidated Uranium has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina, and the United States each with significant past expenditures and attractive characteristics for development. Consolidated Uranium is currently advancing its portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado, with a toll milling arrangement in place with Energy Fuels Inc., a leading U.S.-based uranium mining company. These mines are currently on stand-by, ready for rapid restart as market conditions permit, positioning CUR as a near-term uranium producer.

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