Lotus Resources has announced A-Cap shareholders have voted in favour of the two companies merging.
The voting took place on October 20 during A-Cap’s share scheme meeting, where 99.04 per cent of A-Cap shareholders voted in favour of the proposed transaction.
Once the merger has been implemented, Lotus Resources will begin executing its strategy for the development of the Letlhakane uranium project in Botswana. It will also consider options regarding the Wilconi nickel-cobalt project in Western Australia.
“The company is exceptionally pleased with the results of the A-Cap share and option holder meetings and recognises the trust that they have put in the Lotus team to manage both the Letlhakane uranium project and the Wilconi nickel-cobalt project,” Lotus Resources managing director Keith Bowes said.
“We take the results as being a strong endorsement from them to execute the strategy we have put forward in the announcements and presentations made during and after the scheme implementation deed release.
“Although Lotus remains focused on restarting the Kayelekera project as soon as is practicable, it recognises that there is significant work that can be done on Letlhakane and on Wilconi that we believe will add value to the company in the short term.
“We look forward to working with our new shareholders as we develop our strong project portfolio in this ever-improving uranium thematic.”
Lotus Resources first announced the merger in July, where A-Cap shareholders will receive one new Lotus share for every 3.54 A-Cap shares held on the scheme record date. The transaction implies an offer price of about $0.0521 per A-Cap share.
Once the share scheme is implemented, Lotus shareholders will hold about 79 per cent of the merged group and A-Cap shareholders will hold the remaining amount.
The transaction is expected to be implemented on November 7.