Creating a leading diversified uranium company

TSX-listed IsoEnergy, a uranium exploration and development company with a portfolio of prospective projects in the infrastructure-rich eastern Athabasca Basin in Saskatchewan, and Consolidated Uranium (CUR), which has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina, and the United States, have entered into a definitive arrangement agreement for a share-for-share merger.

IsoEnergy will acquire all of the issued and outstanding common shares of Consolidated Uranium it does not not already hold, and Consolidated Uranium shareholders will receive 0.500 of a common share of IsoEnergy for each CUR Share held On completion of the merger, existing IsoEnergy and Consolidated Uranium shareholders will own approximately 70.5% and 29.5% of the combined company, respectively.

The senior management team of the company will include Philip Williams as Chief Executive Officer, Tim Gabruch as President, Darryl Clark as Executive Vice President Exploration & Development, Graham du Preez as Chief Financial Officer, Marty Tunney as Chief Operating Officer and Dan Brisbin as Vice President, Exploration.

Strategic Rationale for the Merger

• The current uranium market is favourable to uranium mining, say the merging companies. They have an impressive suite of projects, with substantial current and historical resources, They're located in top uranium mining jurisdictions, at varying stages of development, providing near, medium, and long term leverage to rising uranium prices. 
• The combined company will pursue a focused production strategy: With the goal of building a globally significant, multi-asset, multi-jurisdiction uranium producer the company will focus on restarting, developing and exploring its projects while looking to further expand the portfolio through M&A activity. 
• A complementary project base will create a globally diversified uranium company with near-term production, development and exploration projects in top tier jurisdictions, anchored by the world's highest grade indicated uranium resource located in Canada's Athabasca Basin and fully-permitted conventional uranium mines in the USA, ready for rapid restart.
• Their global exploration potential provides investors with exposure to significant exploration upside across a diversified pipeline of properties situated in Canada, the USA, Australia, and Argentina. 
• The combined board and management bring together decades of experience, and a demonstrated track record in all facets of uranium exploration, development and operations, as well as industry leading capital markets expertise including M&A and finance.
• The combined company will enjoy an enhanced capital markets profile with a strong shareholder base. With a pro forma market cap of US$903.5m, it will rank among the top 10 publicly traded uranium focused companies in the world, allowing for greater access to capital and trading liquidity, strengthened position for future M&A and increased attractiveness among investors and utilities. Additionally, it will be backed by corporate and institutional investors including, NexGen Energy Ltd., Energy Fuels Inc., Mega Uranium Ltd., and uranium ETFs
• Finally, It will have a growing uranium market presence. Scale and expertise creates the opportunity to increase commercial participation in the nuclear fuel market, the company believes.

World uranium resources

In the last 60 years uranium has become one of the world’s most important energy minerals. While it is used almost entirely for making electricity, a small proportion is used for the important task of producing medical isotopes. Some is also used in marine propulsion, especially naval. The most productive uranium producer is Australia, with 28% of the world's resources, and Canada hold another 10%, making these countries among the top three sources of uranium globally, the other being Kazakhstan with 13%. The USA comes lower on the list with just 1% according to the World Nuclear Association.  

Tim Gabruch, President and CEO of IsoEnergy has said "We are very excited by this transaction as it creates a new, diversified, industry leading uranium development and exploration company of greater scale that is focused on growth in Canada, the United States and Australia, the world's premier uranium jurisdictions.

"This merger provides our existing shareholders and new investors with an even greater opportunity to participate in the tremendous upside potential of our asset portfolio at a time when sentiment and support around the nuclear sector and the uranium industry in particular are increasingly positive. Together, our exceptional teams have the technical, capital markets, and uranium industry expertise to create significant shareholder value by growing the combined entity into the uranium company of choice."

For Consolidated Uranium, itsChairman and CEO Philip Williams, commented: "There is a great deal of common ground between IsoEnergy and Consolidated Uranium. The asset portfolios and culture of our two companies are complementary and, together, provides our respective shareholders with exposure to a larger company that consists of a proven leadership team, a strong pipeline of development and exploration growth prospects as well as an enhanced position within capital markets.

"We look forward to partnering with IsoEnergy to work towards the successful growth of the Company and its robust asset portfolio."