Toro declares bid for Nova unconditional

South Australian uranium company Toro Energy Ltd has declared its $275 million takeover offer for Perth-based Nova Energy Ltd unconditional after receiving acceptances to more than 81.4 per cent today.

The full text of a Toro announcement is pasted below

Toro Energy Limited (ASX "TOE ") has declared its friendly A$275 million takeover offer for Nova Energy Limited ("NEL") unconditional after receiving acceptances to more than 81.47%, at 10.20am today, of the shares in the fellow uranium explorer.

Toro said the move to 81.47% of Nova followed a rapid increase in the level of acceptances since last Friday.

While the closing date of the offer of 5.5 Toro shares for every one Nova share remains 26th October (unless extended), Toro is encouraging Nova shareholders to accept the offer by the close of business on Monday 22 October, 2007.

"Those shareholders whose acceptances we receive either directly or through their brokers to Computershare by Monday, will be eligible to receive their Toro shares within 7 business days after this," Toro's Managing Director, Mr Greg Hall, said today.

"By the closing date, any shares which become subject to compulsory acquisition, which is enforceable if we move to beyond 90% control, will mean those Nova shareholders concerned will have to wait longer for their Toro shares to be issued," Mr Hall said.

On current share market capitalisation for both companies, the bid values the enlarged Toro entity at ~A$350 million.

If Toro moves to 100% ownership of Nova, the enlarged bidder will have approximately 490 million ordinary shares on issue.

Oxiana Limited, with 227.5 million shares, will hold a 46% stake, Minotaur Exploration Limited will own a further 36 million shares or about 7.4%, Allarrow will hold ~5% and Argonaut will hold ~4% .

Toro and Nova's combined uranium exploration projects are located in Western Australia, South Australia and the Northern Territory and the African states of Namibia, Guinea and Morocco.

The Australian assets include the 19.8 million pound U3O8 Inferred JORC resource at the development-ready Lake Way - Centipede project near Wiluna in Western Australia.

In the Northern Territory, it will own the 1.5 million pound U3O8 Inferred JORC resource at the Napperby project near Alice Springs, and on which Toro has just commenced its maiden resource drilling campaign.

With its strengthened Board and Management team after completion of the merger, Toro will continue its strategy of exploring for or acquiring developable uranium assets.

"We currently have two drill rigs operating on the Napperby project resource extension work, one of which has just moved up from the Warrior project in SA. At any time our business development group is evaluating several opportunities, and this work has continued while the merger with Nova Energy has been underway," Mr Hall said.

With the combined clout of the merged companies, Mr Hall said it was hoped Toro would rate more highly in the current international tender for the Angela-Pamela uranium project near Alice Springs.