Perth-based uranium exploration company Atom Energy Ltd will raise $8 million in an initial public offer to develop uranium exploration projects in the Northern Territory, the comapny announced today.
Perth-based uranium exploration company Atom Energy Ltd will raise $8 million in an initial public offer to develop uranium exploration projects in the Northern Territory, the comapny announced today.
The full text of a company announcement is pasted below
Uranium exploration company Atom Energy Limited ("Atom Energy") today opened its Initial Public Offering ("IPO", "Offer") to raise a minimum of $8 million through the offer of 26,666,667 shares at an issue price of $0.30 with the ability to accept oversubscriptions up to 6,666,667 shares to raise a further $2 million.
At the minimum subscription, the Company is expected to have a market capitalisation of $23.4 million and 78,086,487 ordinary shares on issue.
Atom Energy was established in January 2007 to acquire and develop a portfolio of Northern Territory uranium exploration projects contained within four exploration licences (three granted and one application). All of the projects are located within well known mineralised areas and have each been subject to previous prospecting and exploration activity.
The Company's flagship project is the Cleo's Uranium Project, 175 kilometres southeast of Darwin within the highly prospective Pine Creek Geosyncline. Previous exploration activity including extensive drilling at Cleo's during the 1980s has identified unconformity style mineralisation hosting 740 tonnes (1.6 million pounds) of contained U3O8 at an average grade of 0.12%.
Funds raised through the Offer will be used to acquire and develop the projects, with an initial focus on completing a Joint Ore Reserves Committee (JORC) compliant resource definition on the established Twin and Dam deposits at the Cleo's Uranium Project.
The Company will also pursue exploration and resource delineation on the Munadgee Creek Uranium Project (upon granting), Native Gap Project and Gaylad Creek Projects.
Atom Energy's Managing Director, Mr David Hamlyn, said the capital markets had been very receptive to the IPO due to the quality of the Company's assets, and the strength and experience of the Board and management team.
"We have an exceptional portfolio of advanced assets and given the technical expertise of our Board and the currently buoyant uranium market we believe we are in an excellent position to deliver value for shareholders," said Mr Hamlyn.
"Demand has been strong and we now looking forward to completing the Offer and listing on the ASX," he said.
Montagu Stockbrokers Pty Ltd is acting as sponsoring broker and lead manager to the Offer and the proposed ASX symbol is "AXY".
