Tombador to Issue 259M Shares in GoviEx Uranium Takeover

A Strategic Transformation

Tombador Iron Limited, an Australian-listed company currently suspended on the ASX, is preparing for a significant transformation. The company plans a reverse takeover acquisition of GoviEx Uranium Inc, a Canadian uranium exploration and development company with a flagship asset in Zambia. Upon completion, Tombador will be renamed Atomic Eagle Limited, reflecting its new focus on uranium.

This transaction is not just a change of ownership but a strategic pivot into the uranium sector, a market gaining momentum amid the global energy transition towards low-carbon sources. The acquisition will bring to Tombador a substantial mineral resource base and a foothold in Africa’s emerging uranium province.

Capital Raising and ASX Re-Admission

To facilitate this transition and meet ASX’s re-admission requirements, Tombador is launching a public offer to raise between $5 million and $10 million AUD at an issue price of $0.28 per share. The capital raise is critical to fund exploration and development activities at the Muntanga Uranium Project and to provide working capital for the company’s new strategic direction.

The company’s shares have been suspended since October 2023, and re-listing is contingent on shareholder and regulatory approvals, including ASX’s acceptance of the company’s compliance with Chapters 1 and 2 of the Listing Rules. The public offer and the acquisition are interdependent conditions, underscoring the importance of successful capital raising for the transaction to proceed.

The Muntanga Uranium Project, A Promising Asset

The Muntanga Uranium Project, located in the Siavonga and Chirundu Districts of southeastern Zambia, is the cornerstone of the new Atomic Eagle portfolio. The project comprises six mining and exploration licences covering approximately 1,100 square kilometres. It hosts a JORC-compliant mineral resource estimate of around 40 million pounds of uranium oxide (U3O8), spread across multiple deposits including Muntanga, Dibbwi, Njame, Gwabi, and Kariba Valley.

Geologically, the project sits within the Karoo Supergroup sandstone basin, a prolific but underexplored uranium province in southern Africa. The mineralisation is primarily sandstone-hosted, with favourable characteristics such as shallow open-pit mining potential, heap leaching amenability, and excellent local infrastructure including road access and grid power.

Exploration and Development Plans

Atomic Eagle plans a comprehensive exploration program combining brownfield and greenfield drilling to expand and upgrade the resource base. Brownfield targets include near-mine extensions at Muntanga East and Chisubuka, while greenfield efforts will focus on prospective areas such as Muntanga North, Kariba Valley, and south of Dibbwi. The company aims to convert inferred resources to higher confidence categories and assess optimal development pathways.

Funds raised will also support ongoing technical and environmental studies, including metallurgical testwork and environmental and social impact assessments aligned with international standards. The company is committed to responsible development, emphasizing community engagement and environmental stewardship.

Governance and Advisory Strength

The restructured board and management team bring extensive experience in uranium project development and capital markets. Notable appointments include Govind Friedland as Non-Executive Chair and Daniel Major as CEO, both with deep sector expertise. Strategic advisers such as Matador Capital will provide technical and corporate support, enhancing the company’s capacity to execute its growth strategy.

Joint lead managers Canaccord Genuity and BW Equities have been appointed to manage the public offer, reflecting confidence in the transaction’s potential.

Risks and Market Context

While the transaction and capital raise mark a new chapter, investors should be mindful of inherent risks. Completion risk, regulatory approvals, and ASX re-listing remain key hurdles. Exploration and operational risks in Zambia, including tenure security, environmental permitting, and sovereign risk, are material considerations. Additionally, uranium price volatility and the need for future funding beyond the initial raise introduce uncertainties.

The global uranium market is experiencing renewed interest driven by nuclear energy’s role in clean power generation and energy security. However, the sector remains cyclical and sensitive to geopolitical and market dynamics.

Outlook

Atomic Eagle’s acquisition of GoviEx and the planned capital raise position the company to capitalize on uranium’s growing strategic importance. The Muntanga Uranium Project offers a compelling asset base with significant exploration upside. Success will depend on execution of exploration programs, securing regulatory approvals, and navigating market conditions.