Mega Uranium Ltd. (TSX:MGA) ("Mega" or the "Company") is pleased to announce that it has closed the previously announced sale of its Lake Maitland Uranium Project ("Lake Maitland") in Western Australia to Toro Energy Limited ("Toro") (ASX:TOE) for 415 million fully paid ordinary shares in the capital of Toro (the "Transaction"), representing approximately 28% of the issued and outstanding shares of Toro.
Toro is an Australian uranium company listed on the Australian Securities Exchange. Its flagship and wholly-owned Wiluna Project is located 30 km south-east of Wiluna in Central Western Australia and approximately 90 km north-west of Lake Maitland. With the acquisition of Lake Maitland, Toro represents one of the few development-stage uranium companies with permits in place over two of their key Western Australian assets (Centipede and Lake Way) and a pipeline of significant uranium resources, including Lake Maitland.
Toro's intention is to complete feasibility studies (which will include Lake Maitland) over the short term, to work towards implementation of the Wiluna Project and to commence studies to optimise the inclusion of Lake Maitland within the overall Wiluna Project.
As part of the closing of the Transaction, Toro obtained financial support from its major shareholder, OZ Minerals Limited, and received approval of the Australian Foreign Investment Review Board, the Australian Securities Exchange, Toro's shareholders and Mega's Lake Maitland project partners, JAURD International Lake Maitland Project Pty Ltd ("JAURD") and Itochu Minerals & Energy of Australia Pty Ltd ("IMEA") (together the "Project Partners"), who waived certain pre-emptive rights and consented to the Transaction.
As part of the terms of the Transaction, Toro has appointed two Mega nominees to its board of directors - Richard Patricio, Mega's Executive Vice President, Corporate Affairs, and Richard Homsany, Mega's Executive Vice President, Australia. Mega has agreed to a 12-month escrow of its Toro shares, with customary market exceptions, and to a standstill which limits Mega's ability to acquire additional Toro shares within the next 2 years.
Richard Patricio stated "We are very excited about the future for Toro and think that this combination of assets presents a unique opportunity for Mega shareholders to be part of one of the larger pre-development uranium projects world-wide. We look forward to working with Toro, as board members and as a key shareholder, to assist it in becoming a new Australian uranium producer."
