PERTH (miningweekly.com) – The Supreme Court of Western Australia has called on ASX-listed Vimy Resources to call a shareholder meeting to vote on the proposed A$658-million merger agreement with fellow-listed Deep Yellow.
The two companies in April announced the merger agreement under which Deep Yellow would acquire all of the shares in ASX-listed Vimy, with Vimy shareholders to receive 0.294 Deep Yellow shares for every Vimy share held.
The companies said in a joint statement that the merger transaction implies 28.5c a Vimy share, representing a premium of 35.3% to the 30-day volume weighted average price and a 18.8% premium to the closing Vimy share price on March 25.
Vimy shareholders are expected to meet on July 20 to vote on the transaction, before a second Court date to approve the transaction on July 26.
If approved, the deal could be implemented by August 4.
The merger is expected to create a new global uranium player with significant scale, cash resources of A$106-million, one of the largest uranium mineral resource inventories globally of 389-million pounds, and two advanced, world-class assets in tier-one uranium mining jurisdictions.
Deep Yellow’s project pipeline includes the Tumas project, in Namibia. A prefeasibility study last year estimated that the project could produce 2.5-million pounds of uranium oxide over a mine life of 11.5 years, at an initial capital cost of $98-million.
Vimy’s uranium assets include the Mulga Rock and Alligator River projects, in Western Australia and the Northern Territory respectively. A definitive feasibility study into the Mulga Rock project found that it could produce 3.5-million pounds a year of uranium oxide over a mine life of 15 years, for a capital investment of $255-million.