Friday, 28 September, 2007

Sydney Morning Herald

Toro Energy Ltd says its friendly bid for fellow uranium explorer Nova Energy Ltd has been accepted by the target's major shareholder, Agincourt Resources Ltd.

Agincourt, a Perth-headquartered gold mining and exploration company, is wholly owned by Oxiana Ltd and has a 56 per cent stake in Nova.

Toro and Nova agreed to merge early last month in a bid to geographically diversify their production and exploration efforts.

If the merger succeeds, the new company, Toro Energy would be worth about $400 million and headquartered in Adelaide, a Nova spokesman said.

Toro is offering 5.5 of its own shares in exchange for every Nova share received, valuing the Perth-headquartered target at $276 million.

Together with acceptances from other Nova shareholders, Toro's relevant interest in Nova is now 60.24 per cent.

In a statement, Toro encouraged Nova shareholders too accept the offer before its scheduled close on October 12.

"The merger of Nova Energy and Toro Energy via the offer will create a significant ASX listed uranium explorer, with a management team combining the skills and capacity to advance the company through project development and emerging production," Toro said.

"The company will have the capacity to evaluate and pursue additional opportunities within the uranium sector, with an increased market strength and liquidity."

The merged entity would have advanced projects at Wiluna in Western Australia, Napperby in the Northern Territory and Warrior in South Australia.

It would also have exploration interests in those states and the African nations of Namibia, Morocco and Guinea.

In a joint statement last month, Toro managing director Greg Hall and Nova managing director, Tim Sugden said the merged company would potentially have two Australian uranium projects in production by 2012.

Company observers think it unlikely another party will make an offer for Nova.

Toro's bid is conditional upon receiving 90 per cent share acceptance.

Shares in Toro were three cents or 3.7 per cent higher to 84 cents at 1215 AEST on Friday while Nova's shares were 30 cents or 8.7 per cent higher to $3.75.