GoviEx Uranium Inc. (GXU) Earnings Call Transcript

Hello, everyone. Thank you for joining us for today's webinar, where we will be discussing the GoviEx-Tombador transaction. My name is Isabel Vilela, and I'm part of the executive team here at GoviEx. Joining me today are Mr. Govind Friedland, GoviEx's Executive Chairman; Mr. Daniel Major, our CEO; and Mr. Grant Davey, the founder of Matador Capital. Before we begin, please note that this session is being recorded, and the recording will be made available to all participants following the event. All communications during today's event will take place through the webcast Q&A feature. You're welcome to submit your questions at any time via the chat function on your screen, and our team will address them during the designated Q&A session following the presentation. Daniel will provide a short presentation explaining the transaction followed by 10 to 15 minutes of Q&A. If you have additional questions following this event, please feel free to e-mail us at info@goviex.com, and we'll aim to answer your questions as soon as possible. I'd now like to welcome Mr. Major to begin the presentation. Daniel, please go ahead.

Thank you very much, Isabel, for that introduction, and thank you for everybody who's attending this webinar today. Our intention is to just briefly take you through the structure and the rationale. There will be more press releases and more detailed information coming as we prepare the information circular for the investor vote towards the end of October. So we're going to talk today about the recent announcement yesterday where GoviEx and Tombador have agreed a transaction under which GoviEx will, through a reverse takeover, move to Australia, unlocking our value there that we believe we can get with access to capital for a better peer group and to allow us to continue the development of our project in Zambia. As is customary, we have the disclaimers and cautionary statements. This slide presentation will go on the GoviEx website, and you're at your leisure to read that as and when you want to. We see this transformation as completely changing where GoviEx is going. We see that as a major step forward. It is a reverse takeover of an Australian listed cash shell in Tombador Iron. We see the ASX being a positive place for GoviEx to be. We see it unlocking deeper pools of capital, particularly as the majority of our African peer group are sitting there, particularly the developers. At the end of this transaction, if shareholders vote for it, they will hold 75% of the combined company, and we will rename the company to Atomic Eagle. The Eagle being in reference to the country that we operate in Zambia. We will see a consolidation of our shares through this transaction going down to a total count of 345 million. We are revising and changing the Board with seasoned industry professionals coming in who have a lot of information and knowledge, both on the uranium industry and the mining sector. And the company will remain very much focused on its Zambian assets but continues to examine and look at the opportunity regards our GoviEx Niger. So this is a reverse takeover. GoviEx is going to have its shares traded 100% from GoviEx and investors will then take Tombador shares. We're doing this because Tombador had previously sold an iron ore asset in the past and is now sitting with a very strong cash position of $10.4 million. As part of this transaction, there will be a fundraise at the end of it, which is the deal is contingent on of raising at least $5 million and up to $10 million. And that has already been agreed at a minimum price of [ AUD 0.28 a ] share, which is equivalent today of CAD 0.065. And as part of this transaction, Matador will join as an investor, a cornerstone investor into that financing and become part of this company going forward. The transaction remains subject to the normal customary approvals, including exchange approvals and, of course, shareholder approvals. And the company has received a fairness opinion provided by Stifel Canada. The opportunity we see here really is the ability to access capital but also be within a peer group that is more appropriate to where we operate in our own geography. There are 22 listed uranium companies in Africa. Over 40% of those are situated on targets in Africa. That is equipped, but in North America, there are 73 with only 8%, and we're one of those looking at Africa. Historically, Australian peers have also enjoyed a premium over the Canadian peers. And certainly, that continues as we go forward. We see this opportunity through an RTO as a very low-cost opportunity to move on to Australia and continue to transact there. The other parts of this are very much qualitative and part of that is bringing the Matador team, and I thank Grant Davey joining this call today. They have certainly shown their ability to develop projects and particularly in the uranium industry with Lotus Resources and Boss Energy under their belts of 2 very clear projects that they've taken forward from grassroots to where they now are going into production. And they've done this in other areas of mining and energy as well. And at the end of this transaction, we'll own over 4% and therefore, fully committed and provide their technical skills and financial skills. The Board is being revised. Govind Friedland will remain as Chairman of the company. But Stephen Quantrill will join us from Tombador. He is an engineer by background and has a lot of experience in project development. Eric Krafft of GoviEx and Keith Bowes, who used to be the MD of Lotus Resources, also joined. So we have a very strong position at the Board level in project development and in our industry. And Grant Davey will join us as a strategic adviser going forward. At the moment, we have insider support for over 27.6% taking us forward. Just some key dates to go forward. We're looking at a transaction that's just been announced. The record date for a shareholder meeting is planned to be September 4. The GoviEx shareholder meeting is planned to be on October 24. At the moment, Tombador is expecting to have its own shareholder meeting completed before October 10. And by that time, we will have an understanding of the book that they will have for the fundraise, so GoviEx shareholders will go to a vote knowing that Tombador has already voted and whether the funds are there that underpin this transaction. If all of that goes well, our closing would be on October 31, and GoviEx will delist from the TSXV on November 3 and start trading on the ASX. We really do see this as transformational for GoviEx shareholders. We see this as positioning ourselves well for cash, allowing us for the next 2 years to focus on the development of our Muntanga Project. We've already started to work on expanding the resource there with the initial drilling announcement that came through, both at Muntanga East and Dibbwi close by to increase the size potentially of the Muntanga Project and out at Kariba Valley, where we're trying to add pounds, expand our position in the local area. Zambia sits right on those Karoo sands, one of the largest exploration belts for uranium within Africa, and it remains relatively underexplored, and we see that as being a core. And we think with the support and the development of this company and this access to capital, much improve our position. We're consolidating our capital as well, something shareholders have been asking about. We're revising our Board. We believe we've got a very strong Board to take us forward here, including support from the Matador team who've done this before and come with technical and financial skills. And there's a rebrand going on here, which we feel is required at this time. And we already have substantive insider support taking to the next stage. So at this point, we'll go to questions, but we do hope as you review the documents that are going to come out that investors will understand and appreciate this as a very positive development for GoviEx. We see this as a real step towards furthering the development of Muntanga and access to capital to be able to do those developments as well. So at this point, I'll pause, and I'll turn it back to Isabel for the Q&A session.

Thank you, Daniel. There are currently no questions submitted. So I'll remind everyone that you are welcome to submit your questions at any time via the chat function on your screen. And I'll give you a couple of seconds to see if anyone else has any questions. And if not, we will just finish the call. So I can confirm that there's no questions being submitted. And with this, I'd like to thank everyone. And this concludes our webinar. As I mentioned earlier, feel free to get in touch with us via info@goviex.com with any further questions that you may have. Thank you.