Australians to buy Tanganyika Uranium firm

An Australian company is set to take over a uranium exploration firm in Tanzania.

Austral Africa Resources has entered into a “binding terms sheet” with Tanganyika Uranium Corp.

It hopes to make offers to Tanganyika Uranium shareholders to acquire 100 per cent of the issued shares.

Tanganyika Uranium is a private, unlisted Canadian company.

It has an interest in uranium exploration in Tanzania.

The Australian company considers these assets to be complementary to its current ones in Africa.

The director of the Australian company, Lindsay Colless, said that pursuant to the binding terms sheet, they will offer 64 fully paid ordinary shares in the company for every one share held by shareholders.

This will result in the issue of up to 1,360,000,000 new fully paid ordinary shares in the company at a deemed issue price of $0.0025 cents per share.

The binding terms sheet is conditional — upon the satisfaction of a number of items.

These include the completion of mutual due diligence by both the company and Tanganyika Uranium.

The terms also include receiving acceptances for at least 95 per cent of the TUC shares on issue.

Each of the Tanganyika Uranium directors is to accept the offer for their respective shares, the company is to obtain all required approvals for the issue of the shares pursuant to the offer, and there is to be no claim against Tanganyika Uranium.

“The company will shortly make offers to individual shareholders. It is finalising the notice of meeting for the company’s shareholders to consider all necessary resolutions,” he said.

Tanganyika Uranium has tenure covering two regional zones in Tanzania.

The southern area known as Madaba-Mkuju covers 950 square kilometres and has targeted sandstone roll-front style uranium mineralisation.