Atlas Metals Group PLC saw its shares soar 300% after announcing it has entered into a conditional Share Purchase Agreement to acquire Universal Pozzolanic Silica Alumina Ltd (UPSA) in a deal valued at £1 billion.
The transaction will be executed through a share-for-share exchange, under which Atlas shareholders will hold 3% of the enlarged company, while UPSA vendor shareholders will own 97%.
The acquisition remains subject to due diligence, regulatory clearance, and shareholder approval.
As part of the process, a Competent Person’s Report (CPR) was prepared for UPSA’s Warialda Quarry, which outlined an inferred resource of 160.68 million tonnes, including:
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33.27 million tonnes of sand
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127.41 million tonnes of pozzolanic sandstone
The report also calculated a Net Present Value (NPV) of A$3.304 billion (approximately £1.62 billion) over a 25-year mine life, underscoring the significant commercial potential of the asset.
This strategic acquisition positions Atlas Metals for substantial growth and marks a major milestone in the company’s expansion strategy.
Chris Chadwick, Chief Executive Officer of Atlas, commented:
“We are delighted to have signed the conditional share purchase agreement to acquire UPSA. This transaction is anticipated to transform Atlas in the near term into a £1 billion plus market cap company, delivering substantial value for Atlas shareholders and a unique proposition on the London Stock Exchange.
“UPSA provides an opportunity to access a world-class PSA reserve at an attractive valuation. Given the positive environmental impact UPSA provides the international construction industry, the UPSA resources are already attracting interest from major cement and concrete players and will be targeted for use in private and government infrastructure development projects globally.
“We look forward to completing the transaction as soon as possible.”
