Eclipse Metals (ASX:EPM) to sell Northern Territory Projects to Oz Yellow


  • Eclipse Metals to sell its interests in Ngalia Basin Uranium and Liverpool Uranium Projects in the Northern Territory to Oz Yellow.
  • The buyer, Oz Yellow Uranium Limited, is expected to undertake a fully underwritten IPO to raise a minimum of AU$20 million to facilitate ASX admission.
  • Today, the stock EPM closed 3.846% higher at AU$0.054 per share on ASX.

ASX-listed Australia-based exploration company Eclipse Metals Ltd (ASX:EPM) announced the execution of a binding Heads of Agreement with Oz Yellow Uranium Limited on Monday. Via this agreement, Eclipse has conditionally agreed to sell its interests in Ngalia Basin Uranium and Liverpool Uranium Projects in the Northern Territory to Oz Yellow. 

Sale of the NT Projects is subject to certain conditions, including the entities receiving all shareholder and regulatory approvals to give effect to the Proposed Transaction.

As Transaction, Eclipse will get 60% of completely paid ordinary shares in the buyer company Oz Yellow upon listing on the ASX. A part of them will be distributed to Eclipse shareholders in proportion to their current shareholding. Oz Yellow will pay AU$255,000 in cash and a 4% NSR royalty to Eclipse under the agreement.

Oz Yellow to go Public:

It is expected that Oz Yellow will go public and seek a listing on ASX with a prospectus to be lodged in February 2022. The IPO will raise a minimum of AU$20 million (before costs) at an issue price of AU$0.20 per share, with at least AU$2 million to be reserved for Eclipse shareholders.

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Bottom Line:

The successful divestment of Eclipse’s non-core uranium assets will allow the Company to focus its financial and technical resources on notable assets in Greenland and Australia. The transaction will focus on the exploration and development of the NT Projects. This will help Eclipse develop other projects, including the notable Ivittuut Project in Greenland.

This can serve as an extraordinary opportunity for the EPM to maximise shareholder value in non-core uranium assets.





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