Uranium developer Lotus Resources has signed a scheme implementation deed (SID) to merge with minerals exploration company A-Cap Energy via a scheme of arrangement, to create an Africa-focused uranium player.
According to the SID, Lotus will acquire 100% shares of A-Cap. In exchange, A-Cap shareholders would receive one new Lotus share for every 3.54 shares held in the company. This implies a value of A$0.052 a share for A-Cap shares.
Go deeper with GlobalData
In the absence of a superior proposal, A-Cap’s board has unanimously recommended that shareholders accept Lotus Resources’ offer. This is subject to an independent expert concluding that the offer is in the best interest of A-Cap shareholders.
The merged group will combine the production-ready Kayelekera Uranium Project in Malawi with the future Letlhakane Uranium Project in Botswana.
Lotus managing director Keith Bowes said: “Combining the uranium assets of Lotus and A-Cap creates a dedicated African uranium vehicle that meets the needs of the growing uranium market. Lotus’s resource base will increase almost five-fold, from 51.1 million pounds (mlb) to 241.5mlb (100% basis) while A-Cap shareholders will gain exposure to a production-ready asset in Kayelekera.”
Upon share scheme implementation, Lotus shareholders will own about 79% of the merged group. A-Cap shareholders will hold around 21% of the merged entity.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataA-Cap deputy chairperson Paul Ingram said: “To A-Cap Energy shareholders, this merger provides immediate value realisation at a premium.
“It also provides the opportunity to become a shareholder in Lotus, a larger, more liquid vehicle, while retaining meaningful exposure to Letlhakane and significant leverage to the global uranium thematic. Becoming a part of a larger group significantly reduces development, funding and execution risk.”
