GoviEx Uranium (TSXV: GXU) is on their way to Australia. The uranium explorer this morning announced that it will be conducting a reverse takeover of Tombador Iron Limited, an ASX-listed issuer, as a means of listing on the Australian Securities Exchange.
Tombador Iron is currently an ASX-listed shell with an estimated A$10.4 million in cash reserves on the balance sheet, following the sale of its operating iron ore business.
The proposed transaction will see Tombador acquire GoviEx under a plan of arrangement, after which it will rename itself to Atomic Eagle Ltd. Post-closing, GoviEx shareholders are expected to retain a 75% interest in the entity, while Tombador shareholders will own 25% of the resulting issuer.
GoviEx shareholders are to receive 0.2534 ordinary shares in the capital of Tombador for each GoviEx share held, with the resulting issuer expected to have a total of 345.3 million shares outstanding.
As part of the arrangement, Tombador is to undertake a concurrent financing of between A$5 million and A$10 million, with the resulting entity to have up to A$24.4 million in cash reserves.
“This is a transformational transaction for GoviEx: it brings an Australian public listing, a new capital structure, a refreshed board, new substantial shareholders, a cornerstone investor with recent uranium development experience and a strengthened balance sheet. Our Combined Company, to be named Atomic Eagle Ltd, will lead the development of the Muntanga Project, situated in one of the largest and most under explored sandstone hosted uranium basins in the world, with considerable exploration potential. We are excited to move forward with unlocking its full potential,” commented Govind Friedland, Executive Chairman of GoviEx.
Upon closing, the resulting company will continue to be led by Daniel Major, GoviEx’s current CEO, while the board of directors is to be chaired by Govind Friedland. Other board members are to include Eric Krafft, Stephen Quantrill, and Keith Bowes, whom will serve as non-executive directors. Grant Davey, founder of Matador Capital, meanwhile is to be named as a strategic advisor to the company.
The proposed transaction is expected to close in November 2025. GoviEx is expected to be delisted from both the TSX Venture and OTCQB Venture Market upon closing.
GoviEx Uranium last traded at $0.05 on the TSX Venture.
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