92 Energy welcomes key milestones met in Canadian merger with Atha Energy and Latitude Uranium

92 Energy (ASX: 92E) has welcomed news that two key components have been achieved in a corporate move that will create a collaboration of three Canadian uranium explorers.

In early December 92 Energy’s management and major shareholders announced they had given their “thumbs up” to a deal which will initially see the company merge with Atha Energy.

Atha has also moved to acquire Latitude Uranium, eventually bringing the three firms – each with significant Canadian uranium exploration portfolios under one roof.

Financial strength post-merger

To help bring all this complex interaction together, a number of corporate activities and condition precedents needed to be completed on schedule including Atha successfully raising approximately $28 million, which has now been achieved.

The Atha raising means the combined group will have total pro forma cash of around $72 million if the merger moves to full implementation.

Atha has also received voter support agreements, meaning two of the key conditions precedent to the three-way merger have been met.

A final official go-ahead for the merger remains subject to the satisfaction of certain other conditions, including 92 Energy shareholders approving the scheme and Atha shareholders approving the merger transactions.

Unanimous board recommendation

92 Energy’s board has confirmed it continues to unanimously recommend that the company’s shareholders vote in favour of the merger in the absence of a superior proposal and subject to the independent expert concluding that the proposed scheme is in the best interests of the company’s shareholders.

Each 92 Energy director has also stated they intend to vote all shares in which they have a relevant interest in favour of the scheme – 4.08% collectively of the 92 Energy shares on issue.

The company’s two largest shareholders, IsoEnergy Ltd (~10.1%) and Sachem Cove (~4.92%), have also confirmed they intend to vote their respective shareholdings in 92 Energy in favour of the scheme.

Canada-focused exploration

92 Energy’s managing director Siobhan Lancaster said the merger will create a leading Canada-focused uranium exploration company with financial and technical capacity to unlock the full value of 92 Energy’s Gemini uranium discovery.

With 3.4 million acres along with a 10% carried interest portfolio of claims operated by NexGen Energy and IsoEnergy, Atha is the largest landholder in the uranium rich Athabasca Basin.

92 Energy has achieved promising recent drilling success, confirming the potential of its Gemini discovery in the Athabasca Basin.

Latitude is focused on the Angilak uranium project in Nunavut and the CMB uranium project located in Newfoundland and Labrador.

Gemini a key asset

92 Energy recently confirmed earlier indications of a parallel zone of mineralisation at the Gemini uranium discovery.

Assay results identified the new parallel structure in the first follow-up of the drilling campaign that led to the September 2021 Gemini Mineralised Zone (GMZ) discovery.

New assays have now confirmed that uranium and high-grade copper mineralisation are located along a parallel zone, 300m east of the GMZ.

The latest drilling program at Gemini was successful in achieving three major objectives for 92 Energy, including expanding the GMZ, testing nearby targets and prospecting for uraniferous boulders.

As well as confirming the parallel zones, the program helped expand uranium mineralisation at the GMZ to over 250m by 290m.