Toro Energy

A$39m Acquisition of the Lake Maitland Uranium Project

August 2013

In August 2013 ASX-listed Toro Energy Limited (Toro) announced the acquisition of the Lake Maitland Uranium Project (Lake Maitland) in Western Australia from TSX-listed Mega Uranium Ltd (Mega Uranium) in return for issuing Mega Toro shares valued at $39 million. A $2 million equity capital raising occurred at the same time as the transaction.

Lake Maitland is located 90km south-east from Toro’s 100% owned Wiluna Uranium Project (Wiluna). The addition of Lake Maitland to Wiluna was strategically beneficial due to the potential to improve project economics via an increase in grade and a significantly larger resource base of 76Mlbs U3O8 sufficient for a 20+ year project life.

As part of the acquisition, Toro will benefit from inheriting a pre-existing strategic relationship with Japanese partners who have the option to acquire a 35% interest in Lake Maitland and participate in financing and development of the deposit.

On completion of the transaction, Mega held a 28% shareholding in Toro, and as such transaction required approval by Toro’s shareholders under section 611 Item 7 of the Corporations Act.

Azure acted as financial adviser to Toro in relation to the transaction.