Vancouver – In a move to expand the African content of its mineral project portfolio, Mega Uranium (MGA-T, MGAFF-O) has inked a deal to acquire Nu Energy Uranium (NU-V) through a share swap arrangement.
Pending regulatory and shareholder approvals the planned offer sees Mega Uranium issuing two shares for every three shares of Nu Energy, representing about a 61.5% premium based on Nu Energy’s April 26th closing price and Megas volume-weighted average trading price for the 10-days preceding the announcement.
The principal asset Nu Energy brings to the table is its 92% interest in the Kitongo and Lolodorf uranium properties in the Republic of Cameroon, Africa. The company has also been evaluating potential opportunities in the reprocessing of low-grade secondary uranium-bearing material.
“Nu Energy holds two significant uranium projects in Cameroon and has an exceptional management team with considerable uranium expertise which can drive Mega’s expansion in African uranium exploration and development,” stated Mega Uranium president Stewart Taylor.
The Kitongo project in the Poli area of northeastern Cameroon saw multiple rounds of exploration from 1971 through 1986, including radiometric surveys, mapping, trenching, drilling and two short adits, conducted by a number of government agencies and corporations. NU Energy holds a 1,000 sq. km exploration permit to evaluate the Kitongo deposit and additional targets previously identified by radiometric surveys.
A recent review of the project referenced historic resources identified within three deposits comprising an aggregate of about 13,125 contained tonnes of U3O8 (28.9 million contained lbs. U3O8) with an average grade of 0.10% U3O8. Another historical report discusses an historical estimate of more than 10,000 contained tonnes of U3O8 or about 22 million lbs. U3O8.
Located in southern Cameroon, NU Energys Lolodorf exploration licence covers uranium occurrences evaluated in the early-1980s by the French Government and the International Atomic Energy Agency. An historical resource of over 1,000 contained tonnes of U3O8 (about 2.6 million contained lbs. U3O8) was reviewed with an average grade of 0.1% U3O8.
Uranium mineralization at Lolodorf is hosted in a 2-to-5 km wide belt of syenitic intrusive rocks. Past drilling intersected pyrite-rich zones carrying uraninite and uranothorite associated with chalcopyrite, molybdenite and galena.
Shares of Nu Energy rallied 38% on the takeover news to close up $1.30 at $4.70 apiece on trading volume of more than 2.3 million. Based on its 26.7-million shares outstanding, the company posts a $125-million market capitalization. Meanwhile, Mega Uranium slipped 35 to close down at $7.43 per share.
Just last March Mega Uranium entered a takeover agreement to acquire Monster Copper (MNS-V, MCPRF-O) for its portfolio of prospective iron-oxide copper-gold (IOCG) projects in Labrador’s Central Mineral Belt, north-central Brazil and in the Yukon.
Mega’s principal uranium holdings are in Australia and host a combined resource of more than 47 million contained lbs. of U3O8. It also has exploration projects in Argentina, Mongolia, Bolivia, Colombia and Canada.
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