Shares in West Perth-based Great Western Exploration Ltd have soared today after it announced Michael Kiernan will become chairman and it will focus on uranium projects.
Shares in West Perth-based Great Western Exploration Ltd have soared today after it announced Michael Kiernan will become chairman and it will focus on uranium projects.
At market close, shares in Great Western had surged 16.5 cents cents to 30 cents.
The company, which hitherto focused on gold and base metals exploration, has also announced a name change to Uran Ltd (the Russian name for uranium), plans to acquire advanced uranium production assets in Eastern Europe and its intention to list on the Alternative Investment Market of the London Stock Exchange.
The current chairman, Tom Bannerman, will be appointed as deputy chairman.
Its been a busy week for Mr Kiernan who was appointed as a non-executive director of Adelaide-based mineral sands explorer Australian Zircon NL yesterday.
Mr Kiernan continues to serve as chairman of Monarch Resources Ltd and as chairman of Croesus Mining NL, but plans to step down from chief executive duties at Consolidated Minerals as at 30 June 2006.
The company has also announced Kate Hobbs will be joining as a non-executive director. Until recently she was managing director of South Australian-based uranium explorer, Hindmarsh Resources Ltd.
Below is the full announcement:
Great Western Exploration Limited (ASX: GWE) today unveiled a major new growth and acquisition focus in the international mining industry following the appointment of senior mining executives Michael Kiernan and Kate Hobbs to its Board and the announcement of plans to acquire advanced uranium production assets in Eastern Europe.
The proposed change of direction - including a change of name to Uran Limited (the Russian name for uranium) - will position Great Western as a substantial new growth vehicle in the international uranium industry, which is benefiting from record prices and strong demand growth. In addition, the Company intends to make an application to list its shares on the Alternative Investment Market (AIM) of the London Stock Exchange.
The core of the Company's new growth strategy will be to acquire existing uranium production and mining operations or exploration projects with near-term production potential in former Soviet bloc countries, leveraging off the extensive network of commercial and business contacts within Eastern Europe established by Kiernan as Managing Director of Consolidated Minerals Limited.
Kiernan, who is stepping down as Managing Director of Consolidated on 30 June 2006, will join the Great Western board as Chairman, while the current Chairman, Tom Bannerman, will be appointed as Deputy Chairman. Kate Hobbs, until recently Managing Director of South Australian-based uranium explorer, Hindmarsh Resources Ltd, will join the Great Western board as non-executive director.
Kiernan and Hobbs will each subscribe for a total of 4.0 million fully paid ordinary shares in Great Western at an issue price of 15 cents per share, representing a total investment of $1.2 million in the Company. Each will also be issued 10 million incentive options exercisable at 30 cents on or before 31 July 2010.
Kiernan is well known in the Australian and international mining industry as the founding Managing Director and driving force behind the growth of Consolidated Minerals to become a diversified S&P ASX 200 mining group. With over 30 years experience in the transport, processing and mining contracting industries, Kiernan has been involved in manganese, nickel, iron ore, gold, chromite, barytes and tin operations around the world.
Hobbs has over 30 years experience in the minerals exploration and mining sector, and was previously a founder and Executive Director of Focus Minerals Ltd (previously Austminex Ltd). Before that she held senior executive roles with Reynolds Australia, New Hampton Goldfields, Grenfell Resources and Metana Minerals.
In welcoming the appointments and commenting on the new strategy, Great Western's Chairman, Tom Bannerman, said: "This represents a significant opportunity for the Company in a sector which is currently enjoying record levels of demand driven by the strong growth in the world economy and surging energy demand."
"Great Western is currently reviewing two potential advanced uranium production projects in Eastern Europe and we expect to secure exciting growth assets that will fundamentally change the direction of the Company," he added. "In addition, the Company may ultimately also undertake uranium exploration in Australia."
"Michael Kiernan has extensive experience and a well-established contact network throughout the economically dynamic region of Eastern Europe which will be important for the Company to succeed in its new focus," Bannerman added. "In addition, Kate Hobbs brings a depth of experience in the uranium sector from her previous role at Hindmarsh Resources."
Kiernan said there were numerous opportunities within the mining industry in Eastern Europe, with the region's uranium industry in particular enjoying a renaissance in the current environment. "It is well known that uranium prices increased by more than 50% last year, driven by soaring demand as the world comes to grips with potential serious energy shortages," he said. "We believe demand for uranium will continue to grow, reinforced by accelerating demand from China and India as their economies - and energy requirements - continue to expand."
Great Western will convene a shareholder meeting to be held on 20 June to approve the $1.2 million placement and the proposed change of name.
