Toro acquires Lake Maitland uranium project from Mega Uranium – expands Wiluna regional resource base by 42%
Toro Energy Limited (ASX: TOE) is pleased to announce it has entered into a binding terms sheet to acquire the Lake Maitland Uranium Project in Western Australia from Mega Uranium Ltd (TSX: MGA) for 415 million fully paid ordinary shares in Toro.
As Toro continues to work on implementing its 100% owned Wiluna Uranium Project, (‘Wiluna’) within existing government approvals, this acquisition provides the opportunity to significantly increase the operational life of Wiluna.
Lake Maitland is located 90 km south-east of the proposed site of the processing facility at Toro’s 100% owned Wiluna Uranium Project. The acquisition is expected to provide a number of significant benefits for the development of Wiluna:
- Significantly larger combined resource base: The acquisition will expand Wiluna’s JORC categorized total Mineral Resource base by 42% from 54Mlb of U3O8 to 76Mlb of U3O8 potentially sufficient for a minimum 20 year project life at Wiluna1;
- Improvement in grade and potential to support Wiluna capacity expansion: The Lake Maitland Mineral Resource includes high grade material comprising 6.4Mt @ 881ppm (500ppm cut-off) which is expected to improve the overall blended head grade from the Wiluna deposits, and the increased resources provide an opportunity to investigate an expansion to the planned Wiluna project, subject to government approvals;
- Potential to improve Wiluna Project economics: The increase in the Wiluna regional resource (both in tonnes and grade) has the potential to significantly improve the overall project economics, in particular through decreased operating costs particularly in the first 10 years of operations;
- Benefit from pre-existing strategic partner relationship: The existing Lake Maitland strategic partners – JAURD International Lake Maitland Project Pty Ltd (‘JAURD’) and Itochu Minerals & Energy of Australia Pty Ltd (‘IMEA’) – have an option to acquire a 35% interest in Lake Maitland and participate in the financing and development of that deposit. Toro will inherit the significant strategic and financial benefits of this pre-existing relationship; and
- A$3.5 million of additional capital committed with the transaction: A$1.5 million of cash reserves are included in the Lake Maitland assets which will be acquired from Mega as part of the acquisition. In addition, OZ Minerals Limited and Pinetree Capital Ltd. have each committed to provide A$1.0 million in equity subscriptions to Toro to provide further financial flexibility to meet transaction and ongoing costs.
“Lake Maitland adds significant scale to our Wiluna Project and further strengthens the Wiluna investment case. We believe the characteristics of the Lake Maitland deposit will provide significant operational and financing benefits to Wiluna. Upon successful completion of the acquisition we will welcome Mega as a strategic cornerstone investor in Toro and look forward to working closely with JAURD / IMEA as development of Wiluna and Lake Maitland is progressed to a final investment decision.” Toro’s Managing Director, Dr Vanessa Guthrie said today.
To read this news release in full please click here.
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