Vimy Resources (ASX: VMY) today advised that, after receiving unsolicited approaches from a number of parties, it has initiated a process to review project de-risking and corporate value enhancing opportunities.
The strategic review process will assess opportunities to rapidly build organisational capacity and de-risk the execution of the Company’s flagship Mulga Rock uranium project. This process will also consider the value that may be achieved through potential corporate transactions with recognised industry participants as an alternative to advancing Mulga Rock on an 100% Vimy basis.
The process will run in parallel with Vimy advancing the stand-alone development of Mulga Rock where the Company has commenced the Early Works Program following approval of the Mining Proposal, Project Management Plan and Conditional Environment Management Plans.
Even though the uranium price is resurgent and there is strong interest in Tier 1 assets such as Mulga Rock, there can be no assurance that any transaction will eventuate but with strong inbound interest, the Board must assess all value creation options for Vimy and will keep shareholders updated as to progress.
Vimy has appointed Macquarie Capital Australia Limited as financial adviser and MinterEllison as legal adviser to assist the Board of Vimy with the Strategic Review Process.
Interim CEO, Steven Michael commented:
“Mulga Rock is one of the most advanced uranium development projects in Australia, having secured the approvals required to commence the early works program. Vimy is well placed to bring into production the next uranium project in Australia and consequently, we have recently been approached by several parties seeking to become involved in Mulga Rock.
“We are focused on the next major milestone for Mulga Rock but in parallel believe there is strong merit in channeling this growing external interest into a coordinated process with the goal of de-risking the project development and thereby maximising value for all Vimy’s shareholders.
“This will also assist Vimy with decisions as to whether to expand our project development team or possibly leverage the team and skills of other recognised Uranium players if we decide to go down that path. We look forward to providing a further update to our shareholders in due course.”