Tanzania – Magnis Resources announced this week that it plans to spin off its non-core uranium assets and instead focus on its world-class Nachu graphite project, currently under development in Tanzania.
Having recently fielded a number of proposals for its uranium assets, the company has decided to unlock maximum value for shareholders through divesting from the uranium assets.
The board believes that Magnis’ current share price attributes minimal value to its non-core assets and shareholders would gain more value through a demerger of the assets into another vehicle with all shares received by Magnis as consideration, being distributed to shareholders.
In addition to Magnis’ three uranium projects, namely Thatcher Soak uranium in Western Australia, Manyoni Uranium in Tanzania and Mukuja uranium also in Tanzania, which have a combined mineral resource of about 44Mlbs triuranium octoxide.
Chairman Frank Poullas says the uranium spot price is starting to rise and the supply and demand dynamics point to higher uranium prices ahead. The board is therefore of the opinion that the time is right for a spin-off and is encouraged by the strong interest shown from parties looking at funding the new vehicle.