Adelaide, Sep 4, 2006 AEST (ABN Newswire) - Another uranium explorer has set its sights on an ASX listing early in October after formally announcing today a A$6 million Initial Public Offer (IPO).
Chaired by former long-serving Mitsubishi Motors Chief Executive Officer, Mr Tom Phillips, UraniumSA is offering up to 30 million ordinary shares at 20 cents each to raise funds for exploration across its high quality portfolio of uranium prospective ground in South Australia.
The Company has been formed as part of a collaborative effort between ASX-listed Stellar Resources Ltd and Marathon Resources Ltd.
Shareholders on the share register of both of those companies are entitled to a Priority Offer on a first come, first served basis and relating to about two thirds of the total 30 million shares on offer.
The Offer opens today (Monday 4 September) and is scheduled to close on Friday 29 September, allowing for a mid-October listing on the ASX.
The Company is a uranium-only explorer and has assembled 17 exploration licences and exploration licence applications over more than 7,600 square kilometres of South Australia's Central Gawler Craton and its Cleve sub-domain.
"While the portfolio contains a range of uranium exploration targets, the Company will focus specifically on palaeochannel or roll-front and unconformity styles of mineralisation," UraniumSA's Managing Director, Mr Russel Bluck, said today.
"A key asset is our extensive land tenure holding over the Kingoonya Palaeodrainage System which hosts the Warrior and Ealbara uranium prospects on adjacent tenements," Mr Bluck said.
"With a combination of known uranium mineralisation, extensive airborne anomalies and significant acreage within the tenement boundaries, the Company considers the System to be highly prospective for the discovery of exploitable palaeochannel uranium deposits.
"The Kingoonya Palaeodrainage System is the best known of the paleaodrainage targets and is now effectively controlled by UraniumSA and fellow listed uranium explorer, Toro Energy Limited.
"Quasar, the exploration subsidiary of Heathgate Resources which operates the Beverley uranium mine, holds a very small tenure between the UraniumSA and Toro blocks within the System.
"These ownerships, and our own success as a greenfields explorer in establishing such a strong tenement footprint, complete the recent tenure consolidation across this highly prospective Kingoonya mineralisation.
"We therefore view our holding over this acreage as the most prospective of UraniumSA's targets.
"The upside for us is considerable as almost the entire system has only had a handful of holes drilled, except the most western where a small area around the Warrior prospect has been heavily targeted with more than 500 drillholes."
Cleve sub-domain a potential new "hot spot"
Mr Bluck said the Company's holdings in the Cleve sub-domain had the potential to develop into a new "hot spot" for uranium exploration because of its new mineralisation styles, sound geology and the existing presence of high-profile exploration companies.
The province stretches along the eastern coastal flanks of SA's Eyre Peninsula and UraniumSA has several separate project areas within the sub-domain.
"The majority of world uranium production comes from high-grade deposits localised at unconformities, and exploration for this style of deposit is accelerating in South Australia," Mr Bluck said.
"A good example of this is along the southern boundary of our Cleve blocks where the world's single largest uranium producer, the Canadian company, Cameco, owns the adjoining prospective tenements.
"It means UraniumSA is not just in the right location but in the middle of some of the most prospective and under explored uranium ground in Australia.
"Our total holdings are also in the most pro-uranium exploration and mining political environment in Australia - witnessed by last week's go-ahead for the Honeymoon mine, and strong contributions by the SA Government for ramping up such exploration throughout the State."
More than $1 million has been earmarked for exploration in UraniumSA's first year.
Terms of the Offer
The Offer has a minimum subscription of 20 million shares to raise $4 million.
The minimum share parcel for either Priority or non-priority shareholders, is 10,000 shares.
If the IPO is fully subscribed, UraniumSA will list on the ASX around October 16 this year with 61.2 million shares on issue, and be capitalised at listing at $12.2 million.
The Offer is being sponsored by Melbourne-based Lands Kirwan Tong Stockbrokers Pty Limited.
The Company's two other Board members are prominent uranium geologist and Chinese National Nuclear Corporation's representative in Australia, Mr Xu Gang, and chartered accountant and company director, Ms Alice McCleary, who is a Director of Great Southern Plantations Limited and Deputy Chancellor at the University of South Australia.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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