From the age today...Let the force be with uraniumBarry...

From the age today...

Let the force be with uranium
Barry FitzGerald
August 4, 2007


OXIANA'S uranium affiliates Toro Energy and Nova Energy are planning a $385 merger to create a new force in uranium exploration and development.

Toro and Nova went into trading halts on Friday ahead of the planned deal, which is expected to be a scrip offer from Toro of 5.5 of its shares (last traded at 80¢) for every one Nova share (last traded at $3.70).

The offer would value Nova at $4.40 a share, or a 19 per cent premium to its last sale price.

Analysts expect the deal to be confirmed as early as Monday.

Under the suggested scrip terms, Melbourne-based Oxiana would emerge with a 48 per cent stake in the enlarged Toro. This compares with its current 24.7 per cent shareholding in Toro and its 57 per cent stake in Nova.

Toro is the Adelaide-based uranium explorer created by Oxiana and Minotaur Exploration — also a 24.7 per cent Toro shareholder — to hold their largely South Australian uranium exploration interests. Oxiana inherited its Nova stake when the company acquired Agincourt.

The prime motivation in the Agincourt acquisition was the group's Martabe gold project in Indonesia.

But the surge in uranium prices to up to $US130 a pound has strengthened Oxiana's resolve to add a potential uranium production arm to its portfolio.

Nova's market capitalisation ($226 million) is about twice that of Toro's. This reflects the more advanced status of its West Australian uranium interests, albeit with the State Labor Government continuing to ban uranium mining.

Nova has a pre-feasibility study under way at its Lake Way- Centipede project in WA. It is also exploring in Toro's backyard in South Australia and in Namibia.

The reporter owns Oxiana shares.

http://tinyurl.com/k23ke

Cheers

Commy

P.S I hold OXR