Anatolia Energy to merge with US-based Uranium Resources

THE BOURSE WHISPERER: Anatolia Energy (ASX: AEK) has announced a merger with NASDAQ-listed uranium play Uranium Resources.

The prize for Uranium Resources is access to Anatolia’s Temrezli uranium project in central Turkey, and for Anatolia, is the ability to fast-track Temrezli through to production.

Once the deal is completed the new entity, under the Uranium Resources moniker, will be listed on both NASDAQ and ASX.

In the release to the ASX announcing the merger, Anatolia highlighted the benefits of the merger.

These include:

The combination of Uranium Resources’ in-house technical abilities and operational ISR experience, stronger balance sheet and existing ISR processing infrastructure. This will be put to work developing the Temrezli project, which both companies consider to provide the best avenue for to low cost uranium production for both Anatolia and Uranium Resources shareholders;

The creation of a larger, international uranium development company, with a combined market capitalisation of approximately US$68.1 million ($88.7 million);

The deal provides shareholders exposure to an extensive project portfolio consisting of the Temrezli project and associated exploration tenements in Turkey as well as mid-term and long-term uranium exploration projects in South Texas and New Mexico in the USA; and

Potential to improve the economics of the Temrezli project through reducing upfront capital costs and other additional synergies identified through the potential to utilise and relocate Uranium Resources’ Rosita processing plant in South Texas;

“The Merger with Uranium Resources provides an excellent solution to Anatolia’s current objectives to advance Temrezli into production as quickly and efficiently as possible, and brings with it the possibility of greatly reducing the upfront capital costs if we can successfully relocate and utilise Uranium Resources’ Rosita ISR processing plant in South Texas as currently expected,” Anatolia Energy managing director and CEO Paul Cronin said in the company’s announcement to the Australian Securities Exchange.

“The Rosita processing plant had major upgrades and additions in 2007-2008 before construction was halted.

“It is fit for our Temrezli project, and has the added benefit of already being designed and constructed with the ability to scale up the production profile from 800,000 pounds uranium per annum to 1.6 million pounds uranium per annum with some additional upgrades, which would accommodate potential future production from satellite operations that may feed into the Temrezli central processing plant.

“We’re very pleased to be partnering with the professional team at Uranium Resources, who have a lot to offer in terms of hands-on ISR operations experience, not to mention the benefit of bringing in-house a lot of the specialist skills that Anatolia would otherwise have been outsourcing as we transition from explorer to developer and then producer in the period ahead.”