Adelaide, Sep 25, 2006 AEST (ABN Newswire) - UraniumSA Limited has closed heavily oversubscribed its A$6 million Initial Public Offer (IPO) and is now expected to list on the ASX in the week commencing October 16.
The Company - which has key uranium exploration assets in SA - said today it had been inundated with applications for its offering, which included Priority offers to shareholders in listed explorers, Stellar Resources Ltd and Marathon Resources Ltd.
"The IPO did not allow for oversubscriptions as we have a very set exploration and corporate agenda and focus," UraniumSA's Managing Director, Mr Russel Bluck, said today.
"However, the total applications well exceeded the 30 million 20 cent ordinary shares on offer," Mr Bluck said.
"Significantly, the rate of oversubscriptions was high for each component of the IPO - the retail market, and the Priority allocation for each of the shareholder groups from Stellar and Marathon.
"This is an endorsement of the quality of our uranium prospective ground in South Australia and the focus and scope of UraniumSA's maiden exploration programs."
UraniumSA will list on the ASX next month with 61.2 million shares on issue, and be capitalised at listing at $12.2 million. The Offer was sponsored by Melbourne-based Lands Kirwan Tong Stockbrokers Pty Limited.
Chaired by former long-serving Mitsubishi Motors Chief Executive Officer, Mr Tom Phillips, UraniumSA is a uranium-only explorer.
It owns 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, with first exploration focusing specifically on palaeochannel or roll-front and unconformity styles of mineralisation.
A key asset is its extensive land tenure holding over the Kingoonya Palaeodrainage System which hosts the Warrior and Ealbara uranium prospects on adjacent tenements.
Mr Bluck said at the launch of the IPO that with a combination of known uranium mineralisation, extensive airborne anomalies and significant acreage within the tenement boundaries, the Company considered the System to be highly prospective for the discovery of exploitable palaeochannel uranium deposits.
He said UraniumSA's holdings in the Cleve sub-domain have 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.
More than $1 million has been earmarked for exploration in UraniumSA's first year.
The Company's 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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