Deep Yellow–Vimy merger one step closer

Mulga Rock project. Image: Vimy Resources

Independent expert Deloitte Corporate Finance has concluded that Deep Yellow’s planned acquisition of Vimy Resources is fair and reasonable and in the best interests of Vimy shareholders.

The proposed merger takes place by a scheme of arrangement, with the scheme booklet – which includes Deloitte’s report – registered with the Australian Securities and Investments Commission (ASIC).

The move is expected to create a new global uranium player with significant scale, cash resources of $106 million, one of the largest uranium Mineral Resource inventories globally (389 million pounds) and two advanced, world class assets in Tier 1 uranium mining jurisdictions.

Vimy Resources is a Perth-based resource development company, with its flagship project the Mulga Rock Project, one of Australia’s largest undeveloped uranium resources, located near Kalgoorlie in Western Australia.

Vimy also owns and operates the largest granted uranium exploration package in the world-class Alligator River uranium district, located in the Northern Territory.

The company is exploring for large high-grade uranium unconformity deposits identical to those found in the Athabasca Basin in Canada.

The Supreme Court of Western Australia has asked Vimy shareholders to consider and vote on the scheme, with the booklet expected to be dispatched today, June 20.

Under the scheme, Vimy shareholders will receive 0.294 Deep Yellow shares for every Vimy share.

The directors of Vimy continue to unanimously recommend that Vimy shareholders vote in favour of the scheme, in the absence of a superior proposal. Each member of the board intends to vote, or procure the voting of, all Vimy shares held or controlled by them in favour of the scheme at the scheme meeting, expected to be held on Wednesday, July 20.

Due to the COVID-19 pandemic, in the interests of the health and safety, the meeting will be held electronically via an online platform. Details of how to access the online platform and will be contained in the notice of meeting included in the scheme booklet.

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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