PERTH (miningweekly.com) – Uranium junior Vimy Resources on Thursday announced that it will undertake a strategic review after receiving unsolicited approaches from a number of parties.
The strategic review will assess opportunities to rapidly build organisational capacity and derisk the execution of the company’s flagship Mulga Rock uranium project, in Western Australia.
This process will also consider the value that may be achieved through potential corporate transactions with recognised industry participants as an alternative to advancing Mulga Rock on a 100% Vimy basis.
The process will run in parallel with Vimy advancing the standalone development of Mulga Rock where the company has commenced the early works programme following approval of the mining proposal, project management plan and conditional environment management plans, the company told shareholders in a statement.
“Mulga Rock is one of the most advanced uranium development projects in Australia, having secured the approvals required to commence the early works programme. Vimy is well placed to bring into production the next uranium project in Australia and consequently, we have recently been approached by several parties seeking to become involved in Mulga Rock,” said interim CEO Steven Michael.
“We are focused on the next major milestone for Mulga Rock but in parallel believe there is strong merit in channelling this growing external interest into a coordinated process with the goal of derisking the project development and thereby maximising value for all Vimy’s shareholders.
“This will also assist Vimy with decisions as to whether to expand our project development team or possibly leverage the team and skills of other recognised uranium players if we decide to go down that path. We look forward to providing a further update to our shareholders in due course.”
The company noted that, even though the uranium price was resurgent and there was strong interest in Tier 1 assets such as Mulga Rock, there could be no assurance that any transaction would eventuate, but with strong inbound interest, the board must assess all value creation options for Vimy and would keep shareholders updated as to progress.
Vimy has appointed Macquarie Capital Australia as financial adviser and MinterEllison as legal adviser to assist the board of Vimy with the strategic review process.