Toro to demerge non-core assets including Dusty nickel project and Yandal gold project

Photo: Wikimedia Commons

Perth-based uranium development and exploration company Toro Energy Limited announces its intention to demerge its portfolio of non-core assets including its nickel, gold and base metal assets in Western Australia, subject to all requisite approvals.

The strategic decision to consider the demerger follows a detailed review of its asset base in light of the strong and impressive results delivered from the Lake Maitland Scoping Study and the implications for its broader flagship Wiluna Uranium Project.

The Lake Maitland Scoping Study produced attractive financial metrics demonstrating a stand-alone project highlighted by:

A very significant increase in the value of Lake Maitland is an anticipated outcome of the soon to be completed update of the Lake Maitland Scoping Study,

Recent work continues to highlight strength of Uranium assets

Toro recently reported that planning was well advanced to commence a near-term drilling programme that would deliver potential ore to the pilot plant that is currently in design for the Wiluna project and that a refresh and update of the Lake Maitland Scoping Study (first completed in 2022) is currently underway to evaluate financial outcomes using the latest more favourable commodity pricing and exchange rare guidance.

In addition, the Company announced that improving uranium market dynamics have allowed Toro to lower the cut-off grade and expand the stated uranium (U3O8) and vanadium (V2O5) resources at the Lake Way and Centipede-Millipede deposits by up to 25% U3O8.

Given the Company’s strategic focus on the development and recent positive developments of the Wiluna Uranium Project, the value of its nickel, gold and base metal exploration assets is not currently reflected in Toro’s share price. The Board considers these assets should now logically sit in a separately listed vehicle specifically focused on progressing their exploration and development.

Toro’s Executive Chairman, Richard Homsany said:

“With the strong financial metrics highlighted by the Lake Maitland Uranium Scoping Study, and the expected transformational increase in NPV following a soon to be completed refresh, we believe it is the right time to consider demerging our non-core projects to allow Toro to focus solely on expediting the development of our globally significant uranium assets.

Toro believes a demerger and anticipated IPO of the demerged company provides a compelling opportunity to unlock the considerable underlying value of these highly prospective nickel, gold and base metals assets, while allowing Toro to aggressively pursue the development of its world-class Wiluna Uranium Project”.