- Deep Yellow (DYL) completes its merger with ASX-listed Vimy Resources (VMY)
- The transaction, announced on March 31, will see two uranium projects, the Tumas project in Namibia and the Mulga Rock project in WA, fall under the same portfolio
- DYL says the merger will give it the option to deliver its production target post-2025 thanks to its multi-asset exposure
- Deep Yellow will now focus on integrating the teams to continue development work on the two flagship projects
- Shares in Deep Yellow are down 1.29 per cent to 76.5 cents at 11:02 am AEST.
Deep Yellow (DYL) has completed its merger with fellow ASX-listed Vimy Resources (VMY).
The transaction, announced on March 31, will see two uranium projects, the Tumas project in Namibia and the Mulga Rock project in WA, fall under the same portfolio.
Under the merger deal, Vimy shareholders will receive 0.294 DYL shares for every VMY share held. Deep Yellow shareholders will hold 53 per cent of the merged group, while Vimy shareholders will hold 47 per cent.
DYL said the merger would give it the option to deliver its production target post-2025 thanks to its multi-asset exposure.
It believes with production from both mines, it has the potential to become the largest pure-play uranium producer on the ASX.
Deep Yellow Managing Director and CEO John Borshoff said the transaction gave the company a “major competitive advantage”.
“This emerging, geographically diversified platform we are developing not only satisfies Deep Yellow’s long-term growth strategy but, importantly, has the potential to create significant shareholder value,” Mr Borshoff said.
“Deep Yellow now has one of the latest uranium resource inventories of junior uranium mining companies globally and an experienced management and technical team who know how to successfully develop and operate uranium projects.”
As part of the merger deal, Vimy Resources Executive Director Steven Michael and Non-Executive Director Wayne Bramwell will join the board of Deep Yellow.
Deep Yellow will now focus on integrating the teams to continue development work on the two flagship projects.
Shares in Deep Yellow were down 1.29 per cent to 76.5 cents at 11:02 am AEST.