West Perth based Batavia Mining Ltd has announced that it has reached agreement with AIM-listed mineral company, Thor Mining PLC to sell its portfolio of uranium exploration assets in the Northern Territory to Thor.
West Perth based Batavia Mining Ltd has announced that it has reached agreement with AIM-listed mineral company, Thor Mining PLC to sell its portfolio of uranium exploration assets in the Northern Territory to Thor.
The transaction will see Thor undertake a capital consolidation and listing on the Australian Stock Exchange.
Under the agreement, Thor will acquire Hale Energy Ltd, a wholly-owned subsidiary company of Batavia that holds its uranium assets, for a consideration comprising 16 million fully-paid Thor Mining shares and 8.5 million options (on a post-consolidation basis).
As a result of the transaction, Batavia will emerge with a substantial shareholding in Thor, which intends to undertake an initial public offering in Australia and list its shares on the ASX. Up to 60 per cent of the Australian raising will be allocated to Batavia shareholders on a priority allocation basis. Thor will undertake a capital consolidation prior to issuing the consideration and IPO shares.
Batavia previously announced its intention to divest or spin-off its Australian uranium portfolio to enable it to focus on its core mineral assets in the Gullewa region of Western Australia, including the Deflector Gold-Copper Project - currently subject to a Bankable Feasibility Study and major resource extension drilling program - and evaluation of the iron potential of its tenements in the Mid West region of WA.
Batavia's chairman Terry Smith said the company's board believed that the proposed transaction with Thor represented an opportunity to maximize the value of the uranium assets.
"The transaction is consistent with our decision to focus on advancing Deflector towards production as rapidly as possible, with the sale of the uranium portfolio to Thor enabling Batavia to maintain exposure to the continued development of these assets," he said.
"As a result of the transactions, Batavia will have a substantial shareholding in a diversified minerals company with a strong development and exploration focus, quality asset base and international investor network including a planned Australian listing alongside its existing listings on AIM and the Frankfurt Stock Exchange," Mr Smith said.
"In addition, Batavia shareholders will have the opportunity, on a priority allocation basis, to participate in Thor's Australian IPO," he added. "Following completion of the IPO, Thor will have a substantial funding capacity to fast-track the exploration of Batavia's quality uranium assets and progress its existing specialty metals projects."
The transaction is subject to approval by shareholders of both companies. Thor is currently negotiating a potential underwriting agreement for the proposed IPO and will announce further details regarding this capital raising in the near future. Batavia will convene a shareholders' meeting to be held in July 2006 to approve the transaction.
As at market close, shares in Batavia were down .4 cents to 5.2 cents.
