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Toro Energy to demerge two WA assets

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Toro Energy has revealed plans to demerge its portfolio of non-core nickel, gold and base metal assets in Western Australia.

The soon-to-be demerged assets include the Dusty nickel project and the Yandal gold and base metal project, both located near the northern goldfields.

The uranium company said the plans to demerge the two projects follows a detailed review of the results delivered from the Lake Maitland scoping study and the implications for its Wiluna uranium project.

Toro Energy said due to its strategic focus on the development of the Wiluna project, the value of its nickel, gold and base metal exploration assets aren’t currently reflected in its share price.

Because of this, the non-core assets should sit in a separately listed vehicle specifically focused on progressing their exploration and development.

Toro Energy also has plans to assess its uranium exploration assets to see if any should be part of the demerger.

“With the strong financial metrics highlighted by the Lake Maitland uranium scoping study, and the expected transformational increase in (net present value) following a soon-to-be completed refresh, we believe it is the right time to consider demerging our non-core projects to allow Toro to focus solely on expediting the development of our globally significant uranium assets,” Toro Energy executive chair Richard Homsany said.

“Toro believes a demerger and anticipated (initial public offering) of the demerged company provides a compelling opportunity to unlock the considerable underlying value of these highly prospective nickel, gold and base metals assets, while allowing Toro to aggressively pursue the development of its world-class Wiluna uranium project.

“The considerable amount of work completed to date by our team has demonstrated that the Lake Maitland deposit, which is part of the Wiluna uranium project, is viable as a standalone operation with incredibly attractive financial metrics.”

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