TORONTO (miningweekly.com) – TSX-V- and Frankfurt-quoted Macusani Yellowcake said on Friday it agreed to buy Southern Andes Energy to grow its uranium exploration tenements in south-east Peru in an all-share deal.

The friendly takeover will see Macusani’s shareholders owning 65% and TSX-V-listed Southern Andes 35% of the combined entity. The deal will increase Macusani’s total land package in the district by 275% to over 900 km², it said.

“By consolidating the land holdings in the Macusani uranium district, we are establishing ourselves as a highly prospective jurisdictional play,” Macusani CEO Peter Hooper said in a media release.

“Over the medium to long term, this transaction also provides us with the flexibility to consider other development scenarios within the district, including the construction of a larger production facility.”

At least two-thirds of Southern Andes' shareholders need to vote in favour of the deal for it to go through.

In an October interview, Hooper said Macusani aimed in the first quarter to release a preliminary economic assessment for building a four-million-pound-a-year project.

Southern Andes is the biggest landholder in the district, though Canada’s Cameco and Fission Energy also hold significant land packages around Macusani’s properties.
 

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