The transaction marks the largest domestic uranium deal in a decade, partner says
Gilbert + Tobin (G+T) has helped uranium exploration business Deep Yellow Limited finalise a $658m merger deal with resource development company Vimy Resources Limited.
The merger will take effect by way of a court-approved scheme of arrangement, under which Deep Yellow will acquire 100% of the Vimy shares on issue. Vimy shareholders will receive 0.294 Deep Yellow shares for every Vimy share held.
The scheme of arrangement is expected to be adopted by July.
“This merger has the potential to be a significant value-creating opportunity for both Deep Yellow and Vimy shareholders,” Deep Yellow Managing Director and CEO John Borshoff said. “The expanded strong technical team of Deep Yellow, together with Vimy personnel, positions us well to bring both projects online when uranium prices support the generation of long-term, sustainable positive cash flows.”
The merger will also create a new multi-project, global uranium company, with a considerable scale and global uranium mineral resource inventories of 389Mlbs worldwide. The combined company’s portfolio will include Vimy Resources’ Mulga Rock uranium project in Western Australia and Deep Yellow’s Tumas project in Namibia, which are both in advanced stages of development.
Energy and resources partner Michael Blakiston led the G+T Team on the transaction, with support from corporate advisory partner Sarah Turner. Also included in the team were corporate advisory lawyers Ada Lam and Janelle Sputore, who advised on the merger; energy and resources special counsel Jennifer Hart; and lawyers Giorgia Fraser, Anneka Thomson and Shay Kiriakidis.
“We were thrilled to have advised on this momentous transaction marking the largest domestic uranium deal in a decade and a transaction which endorses Deep Yellow’s strategy of becoming an industry consolidator,” Blakiston said.