ATHA Energy To Acquire Two Uranium Issuers To Create Leading Canadian Explorer

FULL DISCLOSURE: This is sponsored content for ATHA Energy.

ATHA Energy (CSE: SASK) announced a major transaction this morning that will see it more than double its exploration acreage while acquiring two key assets in Canadian uranium jurisdictions outside of the Athabasca Basin.

The transaction will see the major uranium explorer acquire both Latitude Uranium (CSE: LUR), as well as 92 Energy Limited (ASX: 92E), to create a leading uranium exploration company. The resulting company is expected to have exploration claims to 7.1 million acres of prospective land spread across three uranium jurisdictions within Canada.

ATHA will also add to its portfolio two uranium projects with historical mineral resource estimates, while strengthening its balance sheet to the tune of $55 million in cash as a result of the transaction, which is expected to fund exploration well into 2025.

“By combining highly complimentary exploration assets from across the exploration risk curve in top-tier Canadian mining jurisdictions, we believe the combined entity will own one of the most complete portfolios of uranium assets in the entire sector and are thrilled to be able to leverage the combined team’s technical and financial resources to maximize the value of this opportunity,” commented ATHA Energy CEO Troy Boisjoli on the transaction.

WATCH: ATHA Energy: Exploration In Saskatchewan’s Athabasca Basin

Under the terms of the deal, Latitude shareholders will receive 0.2769 of a common share of ATHA for each share held, a 68% premium to yesterdays close. 92 Energy shareholders meanwhile will receive 0.5834 of a common share of ATHA for each share held, a 78% premium. On a post transaction basis, ATHA shareholders will own 49.25% of the resulting company, while Latitude shareholders will own 25.38%, and 92 Energy shareholders 25.37%, while the company is expected to boast a market capitalization of $267 million.

The purchase of Latitude will result in ATHA obtaining the Angilak uranium project in Nunavut, as well as the CMB uranium project in Newfound and Labrador, both of which feature historical resources, including:

  • Angilak: 2.8 million inferred tons at 0.69% U3O8 containing 43.3 million pounds of U3O8
  • CMB:
    • Moran Lake: 14.7 million indicated tons at 0.03% U3O8 containing 5.2 million pounds of U3O8 and 28.3 million inferred tons at 0.03% U3O8 containing 4.4 million pounds of U3O8
    • Anna Lake: 5.1 million inferred tons at 0.04% U3O8 containing 4.9 million pounds of U3O8

The acquisition of 92 Energy meanwhile will add nine uranium exploration projects in the Athabasca region to ATHA’s portfolio, which includes the Gemini Discovery.

READ: ATHA Energy Identifies 145 km of Conductors At East Apex

The discovery is said to be a high-grade, basement hosted target that sits along an underexplored corridor. Recent drilling had intercepts that include 43.0 metres of 0.62% U3O8, including 6.0 metres at 2.17% U3O8.

As part of the transaction, a concurrent financing of $14.0 million, which is to be conducted via $4.0 million in subscription receipts priced at $1.00 per each, and a combination of charitable federal flow-through and charitable Saskatchewan flow-through shares at $1.57 and $1.75, respectively. Net proceeds are to be used for exploration as well as working capital and general corporate purposes.

The transaction remains subject to approval by the shareholders of all three corporations. Meetings seeking such approval are scheduled to occur in Q1 2024.

ATHA Energy last traded at $0.93 on the CSE.

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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