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Toro Energy Receives $75m Takeover Bid from Canadian Uranium Miner IsoEnergy

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By Imelda Cotton - 
Toro Energy ASX TOE Takeover Bid Canadian Uranium Miner IsoEnergy
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Canadian company IsoEnergy is looking to strengthen its top-tier uranium portfolio in a rising market with a $75 million bid for Australia’s Toro Energy (ASX: TOE) and its flagship Wiluna uranium project in Western Australia.

The proposed takeover will add Toro’s high-quality, scoping-stage project — comprising the Centipede-Millipede, Lake Way and Lake Maitland deposits — to IsoEnergy’s asset line-up, which includes past-producing US mines and the ultra-high-grade Hurricane deposit in Canada’s Athabasca Basin.

IsoEnergy currently holds 6 million Toro shares (or 4.99% equity) and plans to develop Wiluna as its flagship Australian project to create a development-ready platform with significant near-term production potential underpinned by a JORC-compliant resource of 78.1 million pounds uranium (measured and indicated) and 34.6Mlbs inferred.

Diversified Uranium Assets

Toro shareholders will gain exposure to a larger and more diversified suite of uranium assets in Tier 1 jurisdictions within an enlarged, liquid vehicle while retaining direct exposure to all of Toro’s assets.

Under the terms of the deal, Toro shareholders will receive 0.036 of a common share in IsoEnergy for each Toro share held, implying a consideration of $0.584 per Toro share and representing a 79.7% premium to Toro’s last traded price of $0.325 and a 92.2% premium to the 20-day volume weighted average price.

On completion, IsoEnergy and Toro shareholders will respectively own approximately 92.9% and 7.1% of IsoEnergy shares on a fully-diluted basis, and Toro will delist from the Australian Securities Exchange.

The group will also hold historical resources of 154.3Mlbs uranium (measured and indicated) and 88.2Mlbs inferred, positioning IsoEnergy to benefit from a rapidly-tightening supply and demand outlook.

Significant Shareholder Value

Toro executive chair Richard Homsany said the takeover would create significant value for the company’s shareholders.

“This transaction […] will provide our shareholders with the opportunity to be part of a larger leading uranium company, and exposure to a diverse portfolio with strong growth potential and the ability to attract enhanced access to funding for Wiluna’s development,” he said.

“Our team will benefit from IsoEnergy’s significant financial strength and we look forward to working together on the successful development of Wiluna for all stakeholders.”

An independent Toro board committee had unanimously recommended that its shareholders vote in favour of the proposal.

Timely Step Forward

IsoEnergy chief executive officer Philip Williams said the acquisition would be a timely step forward in the company’s uranium strategy.

“The Wiluna project strengthens our portfolio at a time when global nuclear demand is accelerating,” he said.

“This transaction positions us to deliver meaningful scale, optionality and sustained value creation for our shareholders [and] we look forward to welcoming the Toro team, who have done an admirable job stewarding the company and its projects through often challenging markets.”