To fund these acquisitions, the company plans to raise approximately C$14m ($10.3m) through concurrent financing.Under the definitive arrangement agreement with Latitude, shareholders of Atha will receive 0.2769 shares of Atha for each share they hold. This represents a 68% premium to the closing price of Latitude’s stock on December 6, 2023.
For the binding scheme implementation deed with 92 Energy, the swap ratio offered is 0.5834 shares of Atha for each share of 92 Energy. This marks a 78% premium to 92 Energy’s stock close on December 7, 2023.
Atha highlighted that the combined company will offer shareholders exposure to 7.1 million acres of exploration area in Canada’s top three uranium jurisdictions. The estimated mineral resources include 2.8 million tonnes of triuranium octoxide (U3O8) at the Angilak deposit, containing 43.3 million pounds of U3O8. Additionally, there are indications of 14.7 million tonnes at Moran Lake and 28.3 million tonnes at Moran Lake, both containing U3O8. There is also an inferred estimate of 5.1 million tonnes at Anna Lake, within the Central Mineral Belt of Labrador.
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The merged company is expected to benefit from improved liquidity and attract more institutional investors. With a cash balance of over C$55m and no debt, the business is in a strong financial position. Assuming the concurrent financing is secured, Atha will be able to support its exploration activities well into 2025.
Atha’s CEO, Troy Boisjoli, expressed excitement about the opportunity to create Canada’s premier exploration company, especially during a time when the world’s increasing adoption of nuclear energy requires new supplies of uranium. Boisjoli believes that by combining complementary exploration assets in top-tier Canadian mining jurisdictions, the combined entity will possess one of the most comprehensive portfolios of uranium assets in the sector. The goal is to leverage the technical and financial resources of the combined team to maximize the value of this opportunity.
As part of the concurrent financing, Atha has entered an agreement with Eight Capital to serve as co-lead agent and joint bookrunner alongside Canaccord Genuity. The company will issue up to 6.4 million charitable flow-through shares and four million subscription receipts, generating total gross proceeds of C$14m.
