Vimy Resources Limited (ASX:VMY, OTCQB:VMRSF) is pleased to provide an update on the strategic review process, which commenced in November 2021. This process is aimed at evaluating options to crystallise value for our shareholders from our asset portfolio and includes both standalone or development of the Mulga Rock Project via a joint venture with a suitably credentialled partner.
The board of Vimy has engaged with several interested parties on a range of different potential, value-accretive transactions and will update shareholders if a suitable transaction that reflects the growing value of our assets can be agreed.
Positively, there has been significant inbound interest in Mulga Rock following achievement of the “Substantial Commencement” milestone on 16 December 2021.
Additionally, Vimy has considered joint venture and full or partial divestment opportunities for the Alligator River Project, in the Northern Territory.
All discussions are currently incomplete, commercial in confidence and have no certainty of completion. The board will continue the strategic review process and, if any of the current proposals become capable of acceptance, the company will advise the market.
Given the nature and status of ongoing discussions, Vimy’s chairperson, The Hon. Cheryl Edwardes AM, who had previously advised her intention to retire from the Board around 1 March 2022, has agreed to remain as chair to provide board and corporate continuity until the strategic review and current discussions are concluded. As previously announced, with Dr Tony Chamberlain moving to the role of chief operating officer Vimy has commenced a search to identify a suitable new non-executive director.
“I am pleased with the level of corporate and commercial interest being shown in Vimy and its two high quality Australian uranium assets – the strategic value of both Mulga Rock and Alligator River cannot be underestimated in this globally volatile political environment,” managing director Steven Michael said.
“We are methodically assessing proposals against the value and risk of progressing these projects on a 100% Vimy basis with the ultimate goal of ensuring we maximise value to our shareholders.
“The Mulga Rock project team remains focused on progressing the early works program onsite and commencement of a bankable feasibility study to enable project financing activities to occur later this year. Similarly, our exploration team is well advanced with planning a resource extension drilling program at Angularli in the Northern Territory during this coming field season.”