Toro Energy's (ASX:TOE) deal with IsoEnergy shows that IsoEnergy is clearly willing to look through a currently unfavourable Western Australia uranium policy setting with a longer-term view on the mining firm's assets, said Euroz Hartleys in a Tuesday note.

The company on Monday said it has signed a scheme implementation deed with IsoEnergy, under which the latter agreed to acquire all of the issued and outstanding shares of the company through a scheme of arrangement.

The research firm said it continues to believe the ban on uranium mining will eventually be overturned, which, according to Euroz, is not a matter of if, but when.

The research firm noted that TOE shareholders retain upside optionality in the immediate term, as key transaction conditions include no formal changes in uranium policy to permit uranium mining and/or mining or development of all or any part of the Wiluna Uranium Project.

Euroz Hartleys has maintained a speculative buy rating on Toro Energy with a price target of AU$1.