Subiaco-based Golden State Resources Ltd and Utah-based White Canyon Exploration LLC will combine their uranium and vanadium assets in a joint venture to list on the ASX later this year.
Subiaco-based Golden State Resources Ltd and Utah-based White Canyon Exploration LLC will combine their uranium and vanadium assets in a joint venture to list on the ASX later this year.
The companies, which both hold tenements in Utah's Thompson project, will each retain a 30 per cent stake in the new firm, with the remaining 40 per cent to be held by the public through a planned capital raising.
Golden State shareholders will have a priority entitlement in that capital raising, of one share in the new company for every four Golden State shares held.
Drilling on the projects, which was previously predicted for May, has been slated for June 15, after receiving all necessary approvals.
The new company will also need to acquire outstanding interests in White Canyon's Daneros and Gietus leases from unrelated parties for around $12 million, which will be a portion of the funds raised.
The full text of a company announcement is pasted below
Golden State Resources has established a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.
This will provide the Company's shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger and advanced project with a short time frame towards mining operations.
Full details of the combined uranium assets to be held in the new company are contained in the Company's announcement issued on 3 May 2007.
It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of the planned capital raising under an IPO prospectus.
Priority Entitlement and Record Date
Golden State shareholders will have a priority entitlement in the capital raising for the new company. It is intended that the Golden State Resources shareholder entitlement will be one share in the new company for every four Golden State Resources shares held at a record date, currently intended to be 10 July 2007.
The Independent Experts for the prospectus for the capital raising have been appointed. The prospectus is expected to be submitted for ASIC approval in the last week of July.
Uranium drilling to commence 17 June
Statutory permits for the first drilling programme on the Daneros ore body have been received, with a provision that drilling may not commence until the conclusion of the Longhorn Sheep lambing season on 15 June.
Drilling is planned to begin on 17 June. The initial programme will twin existing ore grade holes at Daneros, to check historical drilling data and grade and tonnage calculations. Followon drilling will explore extensions to ore bodies and previous ore grade intersections at Daneros and Thompson.
First results will be available within three weeks of drilling.
Terms of agreement with White Canyon Exploration LLC
Golden State and White Canyon will contribute their respective uranium interests to the new entity, which will acquire remnant interests in the Daneros and Geitus leases from unrelated parties for US$10,000,000, part of the funds to be raised. The new company will own 100% of all assets. There is a pre-existing 15% mill return royalty on the Daneros and Geitus leases, ceded to the previous owner of the leases in 1993.
