Toro Energy has received approval to finalise the purchase of the Lake Maitland uranium project in Western Australia from Canada’s Mega Uranium.

The Foreign Investment Review Board (FIRB) says the deal, which will be funded with 415 million Toro shares, can go ahead.

Lake Maitland, 90 kilometres south-east of Wiluna in central Western Australia, contains higher grade material that is expected to improve the overall blended head grade from Toro’s Wiluna deposits.

The company hopes to begin production at Wiluna in 2016, making it the state’s first uranium mine.

Shareholders will vote on the Lake Maitland transaction on October 18.

Toro still needs to secure project financing for the Wiluna project, and hopes to complete a definitive feasibility study in 2014.

Toro shares were down 0.1 cent at 8.4 cents at 1430 AEST.