Subiaco-based uranium explorer Deep Yellow Ltd has raised $15.8 million through the placement of an entitlements issue shortfall with Paladin Resources Ltd.
Subiaco-based uranium explorer Deep Yellow Ltd has raised $15.8 million through the placement of an entitlements issue shortfall with Paladin Resources Ltd.
The placement will give Paladin, which currently holds 11.79 per cent of the company, a further 31.7 million shares, putting its stake at just under 15 per cent.
The fund raising will assist the company in funding its Namibian and Australian exploration programs.
Deep Yellow also announced that Leon Pretorius has relinquished the role of executive chairman to assume the position of managing director, with non-executive director Mervyn Greene taking the role of non-executive chairman.
The full text of a Deep Yellow announcement is pasted below
Deep Yellow Limited (DYL) is a leading uranium exploration company with major uranium assets showing a strong potential for resource development.
The Directors are pleased to report on the following significant developments.
Placement of Shortfall
The Directors have resolved to place the shortfall from the recently closed Non Renounceable Entitlement Issue which equated to 27% of the issue or 31,673,949 shares.
The shortfall will be placed with Paladin Resources Limited at 50 cents per share raising an additional A$15,836,975.
This additional fund raising provides DYL with cash reserves and liquid assets of approximately $70 million to fund its ambitious exploration programmes in Namibia and Australia.
$15,000,000 Exploration Budget Approved
At a Board Meeting held in Perth, Australia on 7th July 2007, the Directors approved exploration budgets totaling A$15m for the 2007/ 2008 financial year.
Board Strengthened
The above very significant increase in exploration expenditure in both Namibia and Australia has resulted in an increase in the work load and responsibilities undertaken by the Company's Executive Directors.
The following Board changes have been made to reflect the rapid growth in the Company and to allow the Executive Directors to accelerate the exploration and development of the Company's projects.
Leon Pretorius has relinquished the role of Executive Chairman to assume the position of Managing Director. He and Executive Director Martin Kavanagh will now be able to focus on the management of the significant increase in exploration expenditure.
Non-Executive Director, Mervyn Greene, will assume the role of Non-Executive Chairman.
In addition the Board has appointed Tony McDonald and Rudolf Brunovs to join the Board as Independent Non-Executive Directors.
Tony is a lawyer and has been in private practice in Queensland for over 20 years. In the last seven years he has focused on the natural resources industry in management and as a legal advisor. Until March 2007 he was an executive director and corporate secretary of Kings Minerals NL, an ASX listed company. He is also Non-Executive Director of ASX listed Planet Gas Limited.
Rudolf is a former audit partner of the International Chartered Accounting firm Ernst & Young and practised in a number of offices in Australia and overseas. For a total period of twelve years he held the position of Managing Partner of the Parramatta NSW and subsequently the Perth office of the firm. He was a member of the Minerals and Energy division within Ernst & Young.
The Board now comprises:
- Non Executive Chairman - Mervyn Greene
- Managing Director - Leon Pretorius
- Executive Director - Martin Kavanagh
- Non Executive Director - Gillian Swaby
- Non Executive Director - Tony McDonald
- Non Executive Director - Rudolf Brunovs
In tandem with the appointment of both Tony and Rudolf the Board can now announce the formation and composition of two new committees to aid in the corporate governance of the Company.
An Audit Committee has been formed, comprising Rudolf Brunovs as Chairman; together with Gillian Swaby and Tony McDonald. In addition a Remuneration Committee has been convened to be Chaired by Tony McDonald other members being Mervyn Greene, Gillian Swaby and Rudolf Brunovs.
An appropriately strengthened Board with a broad skill base focused on managing a substantially increased exploration budget provides Shareholders with an exciting future.
In the past twelve months Deep Yellow has given a high priority to accumulating quality projects. The Directors believe that the projects in Namibia and Australia now provide an excellent basis to develop the Company into a significant participant in the Uranium supply industry.
