Deep Yellow and Vimy Resources have completed their merger, creating a company with the potential to become the largest uranium producer on the ASX.
The expanded Deep Yellow is represented by two advanced uranium projects – the Mulga Rock project in Western Australia and the Tumas project in Namibia – which boast an annual production potential of 3.5 million pounds (Mlbs) and 3Mlbs, respectively.
The Mulga Rock definitive feasibility study (DFS) has been completed, and Deep Yellow plans to revise and update this study to include base metal recovery optimisation work, detailed resource definition drilling work and mining studies.
Deep Yellow aims to complete the Tumas DFS by the end of 2022.
The merger has also consolidated what Deep Yellow considers to be a world-class exploration portfolio across two Tier 1 mining jurisdictions.
This is highlighted by the highly prospective Alligator Project, which will support the Deep Yellow’s strategy of establishing a total production profile of more than 10Mlb per annum.
Former Vimy managing director and chief executive officer Steven Michael joins Deep Yellow as executive director, with Wayne Bramwell also joining as non-executive director.
“Completion of the merger between Deep Yellow and Vimy represents the combination of two world-class, advanced uranium projects and an exciting exploration portfolio, able to leverage Deep Yellow’s plans to become a leading, reliable, long-term uranium supplier into a growing market,” Deep Yellow managing director and chief executive officer John Borshoff said.
“This emerging, geographically diversified platform we are developing not only satisfies Deep Yellow’s long-term growth strategy but, importantly, has the potential to create significant shareholder value.”
Borshoff said the uranium industry was currently “out-of-balance”, suggesting there are too many single-asset companies that lack “sustainable long-term production opportunity, the necessary technical skills and funding to take their projects into development”.
“The industry requires the consolidation that is essential in this sector to build the necessary scale and knowledge required to attract both funding for development and offer diversified, long-term production capability to better satisfy customer needs,” he said.