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IsoEnergy, Consolidated Uranium merge in a deal valued $903.5 million

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(Kitco News) - As the uranium market heats up, IsoEnergy (TSXV: ISO) (OTCQX: ISENF) and Consolidated Uranium (TSXV: CUR) (OTCQX: CURUF) today announced they have entered into a definitive arrangement agreement for a share-for-share merger.

Pursuant to the agreement, IsoEnergy will acquire all of the issued and outstanding common shares of Consolidated Uranium not already held by IsoEnergy or its affiliates by way of a court-approved plan of arrangement under the Business Corporations Act (Ontario).

Under the terms of the merger, Consolidated Uranium shareholders will receive 0.500 of a common share of IsoEnergy for each CUR Share held. The implied fully diluted in the-money equity value of the combined company is estimated at approximately $903.5 million.

Upon completion of the merger, existing IsoEnergy and Consolidated Uranium shareholders will own approximately 70.5% and 29.5% of the combined company, respectively, on a fully diluted in the-money basis.

According to the press release, this merger creates 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 U.S. ready for rapid restart.”

On top of that, with a pro forma market cap of $903.5 million, the combined company 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.”

IsoEnergy is a uranium exploration and development company with a portfolio of prospective projects in the infrastructure-rich eastern Athabasca Basin in Saskatchewan, Canada. IsoEnergy was founded and is supported by the team at its major shareholder, NexGen Energy.

In 2018, IsoEnergy discovered the high-grade Hurricane deposit on its 100% owned Larocque East property in the eastern Athabasca Basin. The Hurricane deposit has indicated mineral resources of 48.61 M lbs U3O8 based on 63,800 tonnes grading 34.5% U3O8 and inferred mineral resources of 2.66 M lbs U3O8 based on 54,300 tonnes grading 2.2% U3O8.

Consolidated Uranium is currently advancing its portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado, with a toll milling arrangement in place with Energy Fuels, a leading U.S.-based uranium mining company. These mines are currently on stand-by, ready for rapid restart as market conditions permit.

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