MERGER: Mega Uranium, Rockgate to pool advanced uranium assets

TORONTO and VANCOUVER – Mega Uranium and Rockgate Capital Corp. have entered into a binding letter of intent to combine the two companies and create a diversified uranium company with advanced uranium assets in Australia and Mali, a pro...

TORONTO and VANCOUVER – Mega Uranium and Rockgate Capital Corp. have entered into a binding letter of intent to combine the two companies and create a diversified uranium company with advanced uranium assets in Australia and Mali, a pro forma cash balance of approximately $22 million and a uranium-focused investment portfolio valued at approximately $12 million.

Rockgate shareholders will receive 2.2 Mega shares for each one common share of Rockgate. The exchange ratio represents an implied price of $0.25 per Rockgate share, based on the closing price of the Mega shares on the TSX on June 5, 2013, and a 36% premium to Rockgate's 20-day volume-weighted average price for the period ending June 5, 2013. Upon completion of the Merger, Rockgate and Mega shareholders will own approximately 49% and 51% of the combined company, respectively.

The two companies expect more value will accrue to their combined assets than would happen independently. Rockgate's most advanced project is the Falea uranium-silver-copper exploration property in Mali. Mega holds three advanced uranium projects – Ben Lomond, Georgetown and Lake Maitland – in Australia.

More information about the proposed merger is available at either company's website, MegaUranium.com or RockgateCapital.com.

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