Completion of Strategic Review and Share Consolidation
Perth, Jan 18, 2017 AEST (ABN Newswire) - As foreshadowed in previous announcements, the Board of Deep Yellow Limited (
ASX:DYL) (DYLLF:OTCMKTS) is pleased to advise that a detailed review of the Company has been completed and a strategic growth plan has been developed; Executive Management will now focus its attention on execution and adding shareholder value. The first step in the plan will require that the Company complete a consolidation of the existing share capital in order to facilitate new institutional support and reposition itself for growth initiatives.
The Board has agreed to set the process in place to consolidate the issued capital of the Company on the basis of one (1) share for every twenty (20) shares currently held. This consolidation is subject to approval by an ordinary resolution of shareholders to be considered at a specially convened General Meeting, the date of which will be advised in a Notice of Meeting to be sent to all shareholders once documentation is finalised.
Securing John Borshoff as Managing Director in late October has resulted in multiple benefits flowing to the Company starting with attracting the strategic relationship with affiliates of the Sprott Group ("Sprott") (TSE:SII), stimulating interest in the share register all leading to removal of share overhangs and generally reinvigorating investor interest in DYL. The daily average trading volume has increased approximately 500% since the new management became involved and equity has witnessed around an impressive 600% increase in value from 0.04cps to circa 2.5cps resulting in an underlying market capitalisation of circa AUD$64M.
The Board believes that the share consolidation is in the best interest of the shareholders and the Board has confidence that the proposal will gain the support of its major shareholders.
About Deep Yellow Limited
Deep Yellow Limited (ASX:DYL) (OTCMKTS:DYLLF) is successfully progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company to produce 10+Mlb p.a.
The Company's portfolio contains the largest uranium resource base of any ASX-listed company and its projects provide geographic and development diversity. Deep Yellow is the only ASX company with two advanced projects - flagship Tumas, Namibia (Final Investment Decision expected in 1H/CY24) and MRP, Western Australia (advancing through revised DFS), both located in Tier-1 uranium jurisdictions.
Deep Yellow is well-positioned for further growth through development of its highly prospective exploration portfolio - ARP, Northern Territory and Omahola, Namibia with ongoing M&A focused on high-quality assets should opportunities arise that best fit the Company's strategy.
Led by a best-in-class team, who are proven uranium mine builders and operators, the Company is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.
Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity.
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