Mega Uranium Ltd. (TSX:MGA) and Rockgate Capital Corp.(TSX:RGT) announced that they have entered into an agreement to merge and create a diversified uranium company.
As quoted in the press release:
Under the terms of the Merger, Rockgate shareholders will receive 2.2 Mega Shares for each one (1) common share of Rockgate held. The exchange ratio represents an implied price of C$0.25 per Rockgate share, based on the closing price of the Mega Shares on the Toronto Stock Exchange on June 5, 2013, and a 36% premium to Rockgate’s 20-day volume-weighted average price for the period ending June 5, 2013. Upon completion of the Merger, Rockgate and Mega shareholders will own approximately 49% and 51% of the combined company, respectively.
Mega Uranium’s Chairman and CEO, Sheldon Inwentash, said:
This transaction represents the opportunity to combine one of Africa’s most promising undeveloped uranium assets with our significant Australian portfolio, to create an international uranium developer. We are confident about the combined team’s ability to unlock significant value from our collective assets for our shareholders.