THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has completed its $35 million all-scrip acquisition of the Lake Maitland uranium project in Western Australia, from TSX-listed Mega Uranium.
In August 2013, Toro agreed to acquire Lake Maitland and associated assets, including $1.5 million cash from Mega, in return for 415 million new fully-paid ordinary shares in Toro.
Mega now owns a 28 per cent shareholding interest in Toro.
Toro has also completed Subscription Agreements with OZ Minerals (ASX: OZL) and Pinetree Capital.
This has resulted in company inheriting Japanese joint venture partners for Lake Maitland.
JAURD International Lake Maitland Project (JAURD) and Itochu Minerals & Energy of Australia (IMEA) have an option to acquire a 35 per cent interest in Lake Maitland and participate in its financing and development.
“This single transaction provides to Toro significant project improvement, corporate and financing opportunities for the total Wiluna project,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.
“We welcome both Mega and Pinetree as shareholders to Toro, thank OZ Minerals for its ongoing support and look forward to working with our new Lake Maitland project partners, JAURD and IMEA, to advance that deposit and the Wiluna project.”
Toro subsequently announced an upgrade to the Resource at the Wiluna uranium project, incorporating the newly-acquired Lake Maitland uranium project.
The new Resource at Wiluna stands at:
72.5 million tonnes at 479ppm uranium for 76.5 million pound of uranium.
Total Wiluna uranium project Resource Inventory (200 ppm cut-off). Source: Company announcement
The acquisition of Lake Maitland is a critical step in the development of the Wiluna project,” Guthrie said.
“The potential for a higher grade mining operation at 800-plus ppm head grade may now be realised from the initial four mines at Wiluna (the already approved Centipede and Lake Way deposits, as well as Millipede and Lake Maitland).
“With the addition of lower grade stockpiled material from these mines, as well as the resources at Dawson Hinkler and Nowthanna deposits, we have the resource base capable of supporting mining operations at Wiluna for more than 20 years.”