Deep Yellow (DYL) - The Uranium Company In Acquisition Mode

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Matthew Gordon spoke with John Borshoff, Managing Director of Deep Yellow Ltd. (ASX:DYL) to discuss the company’s recent activities.

Our previous interview:    • Deep Yellow (DYL) - The Next Uranium ...  

Deep Yellow Ltd. is an advanced exploration and development uranium company focused on becoming a global uranium player. The company has been focused on organic and inorganic growth since Johan Borshoff joined the team.

Deep Yellow Ltd. has recently announced that it will be entering into an AUD$ 658 million merger with Vimy Resources Ltd. which will result in a newly merged group set to be a global uranium player. The merger will be concluded through a scheme of arrangement, under which deep Yellow will acquire all Vimy Resources Ltd. shares on issue.

The shareholders of Vimy Resources Ltd. will receive 0.294 shares of Deep Yellow Ltd. in exchange for each Vimy Resources share held on the scheme record date. The newly merged group will be 53% owned by Deep Yellow Ltd. shareholders with shareholders of Vimy Resources owning the remaining 43%. The merger will be implemented by July 2022.

The newly merged group will have a significant scale with a cash position of AUD$ 106 million and uranium inventories of 389 million pounds. The newly merged group will also possess two advanced uranium projects, namely the Tumas uranium project and the Mulga Rock uranium project. The projects have an annual production capacity of 3.0 million pounds and 3.5 million pounds respectively.

The early-stage assets of the newly merged group will be comprised of the Omahola project in Namibia and the Alligator River project in Australia. The Omaha project has a measured and inferred mineral base of 125 million pounds at 190 ppm U3O8, with 65% of its basement prospective zones still to be tested. The alligator River project is scheduled to undergo 7,000 m of diamond drilling in May 2022.


0:00 - Company Overview
0:50 - Merger with Vimy Resources Discussions
4:46 - Effects of Merger on the Company Projects Priority
9:00 - Attracting a New Group of Investors due to Merger
15:11 - Reason for Lack of Recognition from Utilities
21:43 - Plans for Properly Financing the CapEx
25:24 - Plans for Raising Capital for M&A
28:51 - Operating in Western Australia despite the Political Situation
31:33 - Overview of the New Board Members due to Merger
36:01 - Geopolitical Situations’ Effects on Uranium Juniors
43:34 - Difference between Company Valuations in Australia and North America
48:41 - Addressing the Challenges in M&A
54:00 - Outro

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