The Gemini project, Canada. Source: 92 Energy
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  • 92 Energy (ASX:92E) is looking at a three-way merger with a Canadian company
  • ATHA Energy wants to buy 100 per cent of 92 Energy
  • It also intends to acquire a third company called Latitude Uranium
  • The merger would see the company cashed up with $70 million and more than 7 million acres of landholding
  • 92 Energy is ultimately hopeful the merger will ATHA develop its Gemini discovery
  • 92E shares are up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT

Uranium miner 92 Energy (ASX:92E) has confirmed it’s sizing up a three-way merger between itself and Canada-listed ATHA Energy Corp.

At the same time, ATHA wants to buy up a second company called Latitude Uranium. Canadian courts have approved that deal.

That would see 92 Energy taking part in a three-way merger calculated to deliver a 78 per cent premium to 92E’s existing shareholders.

92 Energy shareholders are to receive 0.58 ATHA shares for every 92E share held – equalling roughly 65 cents per share. 92E’s Board is recommending shareholders greenback the merger.

“The deal will deliver a significant premium to 92E shareholders while also giving them the opportunity to be part of the premier Canadian uranium explorer with outstanding growth potential underpinned by a significant discovery,” 92 Energy Managing Director Siobhan Lancaster said.

ATHA wants 100 per cent of 92 Energy and so in that regard domestic shareholders don’t need to look at the complexity of the full deal.

What 92 Energy sees as valuable in the proposal is the consequent establishment of a Canada-based uranium exploration company beefed up enough to develop 92E’s Gemini discovery.

All three companies together would have more than C$64 million (A$71.3 million).

“We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium,” ATHA CEO Troy Boisjoli.

But the merger would see 92 Energy “maintaining exposure to Gemini through a Canadian-listed vehicle,” it announced today.

It would also put 92 Energy in a corporate club with more than 7 million acres of exploration tenure.

92E shares were up 32.9 per cent, trading at 48.5 cents at 11:10 am AEDT.

92E by the numbers
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