Juniors propose merger to create uranium company

Vancouver A proposed merger between Energy Metals (EMC-V) and Quincy Energy (QUI-V) has been initiated to create a uranium-focused company with an expanded portfolio of projects in Canada and the United States.

The proposed surviving entity, Energy Metals, is presently targeting advanced uranium properties in Wyoming, Texas, and New Mexico that are amenable to in-situ leaching (ISL) technology. Quincy holds uranium projects in Arizona, Wyoming, New Mexico, Oregon and Ontario, and also owns a portfolio of gold properties in the United States.

Energy Metals recently completed the acquisition of Standard Uranium on the basis of 0.64 common shares of Energy Metals for each common share of Standard. The main asset of Standard (which is about to de-listed from the TSX Venture Exchange) is a 99% interest in a joint-venture that owns a uranium processing facility in South Texas, along with Texas mining leases and an exploration database.

The next step calls for Quincy to become a wholly owned subsidiary of Energy Metals, with shareholders receiving 0.2 shares of Energy Metals for each Quincy share. Energy Metals will also assume Quincy’s outstanding warrants and options, subject to certain adjustments. The merger agreement is subject to various regulatory approvals, as well as the consent of shareholders holding no less than 30% of Quincy’s outstanding shares.

Paul Matysek, president of Energy Metals, says the proposed business combination with Quincy is the next step in the company’s strategy to eventually become “one of the largest U.S. domestic uranium producers and resource base-holders in the public sector.”