Uranium Pivot Risks Loom as Tombador Acquires GoviEx and Rebrands
Tombador Iron Limited is set to transform into Atomic Eagle Limited through its acquisition of GoviEx Uranium Inc, creating a new ASX-listed uranium explorer focused on Africa’s Muntanga Project. A capital raise of up to A$10 million will underpin this strategic pivot.
- Binding agreement to acquire 100% of GoviEx Uranium Inc
- Creation of Atomic Eagle Limited, an ASX-listed uranium company
- Focus on Muntanga Uranium Project in Zambia as core asset
- Capital raise of up to A$10 million to fund resource growth
- Experienced uranium board and Matador Capital strategic involvement
A Strategic Acquisition to Enter Uranium
Tombador Iron Limited, historically an iron ore producer, is pivoting sharply into the uranium sector with a binding agreement to acquire GoviEx Uranium Inc. This transaction will see Tombador absorb GoviEx, creating a new ASX-listed entity named Atomic Eagle Limited, focused on uranium exploration and development across Africa.
The centerpiece of this transformation is the Muntanga Uranium Project in Zambia, a substantial asset covering over 1,100 square kilometers with multiple mining and exploration licenses. The project sits within the Karoo Supergroup Sandstone, one of the world’s largest uranium-hosting sandstone provinces, positioning Atomic Eagle to tap into a promising resource base.
Capital and Expertise to Drive Growth
To support this ambitious shift, Tombador is conducting a capital raise of up to A$10 million. The funds are earmarked for advancing the Muntanga Project and expanding its resource base, aiming to achieve economies of scale that could materially improve project economics. With cash holdings nearing A$11 million at quarter-end, the company is financially positioned to execute its development strategy.
Backing this move is Matador Capital, a respected advisory group with a track record in uranium sector successes such as Lotus Resources and Boss Energy. Matador will provide strategic investment and technical expertise, while the new board will be chaired by GoviEx’s Govind Friedland, alongside seasoned uranium professionals and advisors, signaling strong governance and sector know-how.
Transaction Details and Market Implications
The reverse takeover structure will result in former GoviEx shareholders owning approximately 75% of the merged group, with Tombador shareholders holding the remaining 25%. The combined entity is valued between A$104.5 million and A$109.5 million, depending on the final capital raise outcome. Post-completion, expected in November 2025, GoviEx will delist from the TSX Venture Exchange, consolidating its listing on the ASX.
This move not only broadens Tombador’s commodity exposure but also taps into growing global interest in uranium amid energy transition trends. The ASX listing is expected to provide access to deeper capital pools, potentially unlocking significant valuation uplift as key milestones are achieved.
Operational and Financial Highlights
During the quarter, Tombador reported receipt of A$1.58 million in Brazilian tax refunds and maintained a strong cash position. The company also collected royalty income from its former iron ore operations, though future royalties may face pressure from challenging market conditions in Brazil. Corporate costs included significant expenses related to the GoviEx transaction, reflecting the scale of this strategic pivot.
With a new board in place and shareholder approvals secured at the recent extraordinary general meeting, Tombador is poised to complete the transaction and embark on its new uranium-focused journey as Atomic Eagle Limited.
Bottom Line?
As Tombador rebrands to Atomic Eagle and embraces uranium, investors will watch closely how the Muntanga Project’s development unfolds amid shifting energy markets.
Questions in the middle?
- How will the capital raise impact shareholder dilution and funding sufficiency?
- What are the key milestones and timelines for advancing the Muntanga Uranium Project?
- How might uranium market volatility affect the merged company’s valuation and strategy?
