IsoEnergy Ltd. has agreed to acquire Toro Energy Ltd. in a deal that significantly expands its uranium portfolio, adding the Wiluna Uranium Project in Western Australia and creating a diversified, top-tier uranium development platform.
- IsoEnergy to acquire all Toro shares via scheme of arrangement
- Toro shareholders receive IsoEnergy shares at a 79.7% premium
- Combined entity to hold over 133 million pounds of uranium resources
- Wiluna Uranium Project becomes flagship Australian asset
- Transaction subject to regulatory and shareholder approvals, closing expected H1 2026
Strategic Acquisition in a Rising Uranium Market
IsoEnergy Ltd., a globally diversified uranium company, has announced its agreement to acquire Toro Energy Ltd., an Australian uranium development company, through a scheme of arrangement. This transaction, subject to regulatory and shareholder approvals, aims to create a combined entity with a robust and geographically diversified uranium portfolio spanning Canada, the United States, and Australia.
The acquisition notably adds Toro’s Wiluna Uranium Project in Western Australia to IsoEnergy’s existing assets, which include past-producing mines in the U.S. and the ultra-high-grade Hurricane deposit in Canada’s Athabasca Basin. The Wiluna project, located in a mining-friendly jurisdiction, is a scoping-stage asset with significant near-term production potential, complementing IsoEnergy’s development pipeline.
Premium Consideration and Shareholder Benefits
Under the terms of the deal, Toro shareholders will receive 0.036 of an IsoEnergy share for each Toro share held, implying a consideration of A$0.584 per Toro share. This represents a substantial premium of nearly 80% over Toro’s last traded price and over 90% relative to its 20-day volume weighted average price. Post-transaction, IsoEnergy shareholders will own approximately 92.9% of the combined company, with Toro shareholders holding about 7.1% on a fully diluted basis.
The deal offers Toro shareholders exposure to a larger, more diversified uranium portfolio with assets in stable jurisdictions, including Canada and the U.S., alongside continued exposure to the Wiluna project. IsoEnergy’s strengthened balance sheet and access to capital markets are expected to support the development of Toro’s projects and future growth opportunities.
Substantial Resource Base and Market Positioning
The merged group will hold combined mineral resources exceeding 133 million pounds of uranium measured and indicated, plus nearly 40 million pounds inferred, according to NI 43-101 and JORC standards. This significant resource base positions the company as a leading player in the uranium sector, with assets in top-tier jurisdictions known for mining stability and regulatory support.
Australia, particularly Western Australia, ranks as the world’s number one uranium resource holder and was among the top uranium producers in 2024. The Wiluna Uranium Project, comprising the Centipede-Millipede, Lake Way, and Lake Maitland deposits, will become IsoEnergy’s flagship Australian asset, enhancing its geographic diversification and production potential.
Capitalizing on Nuclear Energy Momentum
The timing of this acquisition aligns with strong momentum in the nuclear energy sector. The World Nuclear Association projects uranium demand to rise by approximately 30% by 2030 and to more than double by 2040. IsoEnergy’s expanded portfolio and diversified jurisdictional exposure are expected to position the company well to benefit from tightening supply-demand dynamics in the uranium market.
Both companies’ leadership expressed optimism about the transaction. IsoEnergy’s CEO Philip Williams highlighted the strategic fit and growth potential, while Toro’s Executive Chairman Richard Homsany emphasized the significant premium for Toro shareholders and the enhanced access to funding and market presence.
Next Steps and Regulatory Hurdles
The transaction is subject to several conditions, including approval by Toro shareholders, court approval, and regulatory consents from bodies such as the Australian Foreign Investment Review Board, ASX, TSX, and NYSE. The companies anticipate shareholder meetings and court hearings in early 2026, with completion expected in the first half of 2026.
Upon completion, Toro will be delisted from the ASX, and IsoEnergy shares will continue trading on the TSX and NYSE. IsoEnergy may consider an ASX listing in the future but has made no commitment to do so at this stage.
Bottom Line?
As IsoEnergy integrates Toro’s assets, investors will watch closely for regulatory green lights and the company’s ability to leverage its expanded portfolio amid a bullish uranium market.
Questions in the middle?
- Will regulatory approvals, especially Western Australian uranium mining policy, align to enable Wiluna’s development?
- How will the combined entity manage integration risks and realise synergies across diverse jurisdictions?
- What impact will rising uranium prices have on IsoEnergy’s valuation and access to capital post-acquisition?