Atlas Metals Group (LON: AMG), previously known as MetalNRG, is planning to acquire Universal Pozzolanic Silica Alumina (UPSA) via an all-share offer. No figure has been put on the deal. The news of the proposed reverse takeover has led to the share price more than doubling, making the best performer on the London Stock Exchange.
UPSA has commercialisation rights to a pozzolanic silica alumina (PSA) in Australia. The extraction rights for 250 million tonnes last 99 years and are held by its partner Claystone International. There are another 1.35 billion tonnes of reserves over which UPSA has the rights to extract.
The estimated value of the reserves in the ground is £10/tonne. PSA can be used to make a greener cement product. Negotiations with off-takers have started and the cover up to 270,000 tonnes of PSA.
UPSA has a book value of £1.08bn, based on the 250 million tonnes of PSA. This means that Atlas Metals shareholders will own a small percentage of the enlarged group.
Atlas Metals has disposed of a gold asset in Arizona for $550,000 and other non-core assets may be sold.
The Atlas Metals share price has jumped 132.4% to 21.5p, which is the highest it has been since last December. The market capitalisation is £3.2m.