Lotus Resources and A-Cap Energy to merge to create Africa focused uranium company

July 14, 2023

Uranium focused minerals companies Lotus Resources (ASX:LOT) and A-Cap Energy (ASX:ACB) have agreed to merge to create a leading uranium player with significant projects in Africa.

Thomson Geer is advising Lotus on the merger via a Scheme of Arrangement, which will see Lotus acquire all of A-Cap's shares in an all-scrip deal.

Under the scheme A-Cap shareholders will receive 1 new Lotus share for every 3.54 A-Cap shares they hold, representing a 20.7 per cent premium to the value of A-Cap shares the day before the announcement of the scheme.

The merger is unanimously supported by the A-Cap board, in the absence of a superior proposal and subject to an independent expert concluding the scheme is in the best interests of A-Cap shareholders.

The Thomson Geer team was led by Partner Hedley Roost, who said: "We're pleased to be assisting Lotus to merge with A-Cap to create a new leading uranium company with significant assets and potential to help supply the world's energy demands."

Thomson Geer is advising Lotus on all aspects of the merger.

Lotus owns 85 per cent of the Kayelekera uranium project in Malawi while A-Cap owns the Letlhankane uranium project in Botswana, which is considered one of the world's largest undeveloped uranium deposits.

The merger combines two highly complementary and synergistic projects located in the same region and both with significant leverage to the global uranium thematic.

The merger is due to be completed in October.

Hedley was supported by Senior Associates Liz Wreck and Chris Seotis, and Associate Kajal Parmar.

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