In early December, 92 Energy entered into an implementation deed under which CSE-listed ATHA would acquire 100% of 92 Energy via a scheme of arrangement.
Under the complex merger plans, ATHA also moved to acquire Canadian firm Latitude Uranium, eventually bringing the three firms with significant Athabasca Basin exposure under one roof.
To complete the proposal, a number of key conditions precedent needed to be met and 92 Energy reports that ATHA continues to make good progress in that area, including the recent completion of a capital raise that will result in the combined entity having a pro-forma cash balance of approximately $73 million.
ATHA has also recently executed resolutions approving the scheme and its acquisition of Latitude from its shareholders.
In response, Latitude has commenced mailing its shareholders details of a special meeting scheduled for 27 February, where a vote will be held to approve the ATHA transaction.
Chief executive officer of ATHA Troy Boisjoli told shareholders that the material advancements on the transformational transactions have placed the company in a position to derive significant value from an industry-leading portfolio of uranium assets, “at a time when market fundamentals have never been stronger.”
92 Energy preparations
For its part, 92 Energy says activities are progressing on schedule.
A scheme booklet is expected to be released to shareholders mid-February and a special shareholder meeting to approve the scheme anticipated for late March.
The 92 Energy board has unanimously recommended the scheme, with members confirming their intention to vote all 92 Energy shares in which they have a relevant interest in favour of the scheme in the absence of a superior proposal.
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 is also gaining a name in the region, having achieved drilling success at its promising Gemini uranium discovery.
During the December quarter, 92 Energy received assays confirming uranium and high-grade copper mineralisation along a new parallel zone 300m east of the Gemini Mineralised Zone (GMZ).
Drilling within the GMZ intersected thick zones of continuous mineralisation and extended the footprint of the prospect.
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.
Latitude is focused on the Angilak uranium project in Nunavut and the CMB uranium project located in Newfoundland and Labrador.
