Snow Lake Resources Ltd. (NASDAQ:LITM) shares are surging on Monday after the company penned a deal to acquire all remaining shares and options it does not already hold in Global Uranium and Enrichment Limited (GUE) for around AUD44.5 million ($29 million).
In particular, GUE shareholders will receive AUD0.0968 in Snow Lake shares for every GUE share held as of the record date.
This offer represents a 40.3% premium to GUE's closing price of AUD0.069 on Oct. 3, the last trading day before the announcement, and a 54.8% premium to the company's 30-day volume-weighted average price (VWAP) of AUD0.063 through the same date.
The final number of new Snow Lake shares will be determined based on a formula linked to the USD/AUD exchange rate, with a maximum limit of 0.083878 Snow Lake shares per GUE share.
The transaction is expected to close in the first quarter of 2026, subject to customary approvals and conditions.
Once completed, the merged entity is expected to have a market capitalization of around $76.7 million and cash holdings of roughly $18.5 million, positioning it well for future expansion.
The transaction will form a new entity and aims to establish a growth-driven, U.S.-focused company centered on the nuclear fuel cycle.
The combined company stands to benefit from favorable long-term uranium market dynamics and the U.S. government's initiatives to accelerate nuclear energy development to strengthen national, economic, and energy security.
Snow Lake’s Chief Executive Officer, Frank Wheatley, said, “Combining our assets with those of GUE is a natural fit for our strategy, as it consolidates our joint venture with GUE on the Pine Ridge uranium project in the prolific Powder River Basin in Wyoming, allowing for an expedited pathway to development and eventual production. It also creates one of the largest portfolios of exploration and development uranium projects in the U.S.”
LITM Price Action: Snow Lake Resources shares were up 3.64% at $5.12 at the time of publication on Monday. The stock is trading near its 52-week low of $1.97, according to Benzinga Pro data.
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