92 Energy sets up transformative 2024 with mergers and exploration milestones
92 Energy (ASX: 92E) is set for a busy 2024 on the exploration and corporate front after a successful December quarter.
In late 2023, the company completed the summer drill program at its Gemini project in Canada’s south-east Athabasca Basin and entered into a corporate collaboration that will see three Canadian uranium explorers merge.
In the December quarter, 92 Energy also entered into a scheme implementation deed under which CSE-listed ATHA Energy proposes to acquire 100% of 92 Energy.
“92 Energy made exceptional progress in the past quarter towards its overriding objective of creating value for our shareholders,” managing director Siobhan Lancaster said.
“The completion of our summer drilling program demonstrated the enormous potential upside of our Gemini uranium discovery.”
“We then announced the ATHA transaction, which we believe will unlock the full value of Gemini, creating further value for 92 Energy shareholders.”
Two conditions precedent to the transaction that will bring the trio of explorers together have been met already, including the completion of an capital raise by ATHA that will result in the combined entity having a pro-forma cash balance of approximately $73 million.
“With uranium prices reaching in excess of US$100/lb, I am extremely excited by the potential of merging with ATHA and Latitude and look forward to a successful first quarter in 2024 as we move through the scheme process and carry out our gravity survey at our Gemini project,” Ms Lancaster said.
The 92 Energy board has unanimously recommended the scheme, with members confirming their intention to vote in favour of the scheme for all 92 Energy shares in which they have a relevant interest, in the absence of a superior proposal.
Corporate collaboration
Under the complex merger plans, ATHA has also moved to acquire Latitude Uranium, eventually bringing the three firms with a significant Athabasca exposure under one roof.
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 promise
During the December quarter, 92 Energy received assays confirming uranium and high-grade copper mineralisation along a new parallel section 300m east of the Gemini mineralised zone (GMZ).
Drilling within the GMZ intersected thick areas of continuous mineralisation and extended the footprint of the zone.
The company also discovered a radioactive boulder 18km south-west of the GMZ during the summer prospecting program that returned an assay of 0.39% uranium.
This was of particular interest as radioactive boulders can be used to vector toward source uranium mineralisation.
Uranium mineralisation at the GMZ has now been defined over 250m x 290m and on the back of the recent success, a large-scale ground gravity survey over the greater GMZ is scheduled for the first quarter of 2024.