Toro Energy to Join IsoEnergy in $0.58-a-Share Deal with 80% Premium

A Strategic Uranium Merger

Toro Energy Ltd has agreed to be acquired by Canadian-listed IsoEnergy Ltd in a deal that values Toro shares at A$0.584 each, representing a striking 79.7% premium to Toro’s last traded price before the announcement. The transaction, formalised through a Scheme Implementation Deed, will see Toro shareholders receive 0.036 IsoEnergy shares for every Toro share held, effectively merging Toro’s Australian uranium assets with IsoEnergy’s diversified portfolio spanning Canada, the United States, and Australia.

This merger promises Toro shareholders access to a broader suite of uranium exploration and development projects, including the high-grade Hurricane deposit in Canada’s Athabasca Basin and near-term production assets in tier-one jurisdictions. The combined entity is expected to benefit from increased scale, liquidity, and capital access, backed by institutional investors such as NexGen Energy and Energy Fuels.

Progress at Wiluna Amid Market Optimism

While the acquisition process unfolds, Toro continues to advance its flagship Wiluna Uranium Project in Western Australia. The company has completed the design phase of a beneficiation and hydrometallurgical pilot plant, which will process bulk samples from multiple deposits including Lake Maitland, Lake Way, and Centipede-Millipede. This pilot plant aims to validate processing techniques at near-production scale and inform future development strategies.

Market conditions are notably favourable, with uranium prices aligning closely with those used in Toro’s recent scoping study that values the Lake Maitland operation’s pre-tax net present value at nearly A$908 million. Global demand drivers include soaring electricity consumption from data centres and a renewed push for nuclear power capacity, particularly in the US and UK, where governments have announced ambitious nuclear expansion plans.

Regulatory and Financial Landscape

The transaction remains subject to several conditions, including shareholder approval, court sanction, and regulatory clearances from bodies such as the Australian Foreign Investment Review Board and multiple stock exchanges. Toro’s independent board committee recommends shareholders vote in favour, pending an independent expert’s positive assessment.

Financially, Toro reported a net cash outflow of A$2.66 million for the quarter, primarily driven by exploration and evaluation activities, leaving cash reserves of A$1.95 million at quarter-end. The company anticipates reduced expenditure in upcoming quarters and expects to benefit from IsoEnergy’s stronger financial position post-merger.

Looking Ahead

As Toro shareholders prepare to vote on the scheme in early 2026, the uranium sector’s momentum and Toro’s technical progress position the merged entity to capitalise on a potentially accelerating nuclear fuel cycle. However, the final outcome hinges on regulatory approvals and the pilot plant’s ability to de-risk the Wiluna Project’s processing pathway.