Perth-based minerals explorer Korab Resources Ltd has detailed the planned spin-off of 90 per cent of the uranium and thorium rights within its mineral projects, in a new company to be called Uranium Australia Ltd.
Perth-based minerals explorer Korab Resources Ltd has detailed the planned spin-off of 90 per cent of the uranium and thorium rights within its mineral projects, in a new company to be called Uranium Australia Ltd.
The full text of a company announcement is pasted below
URANIUM AUSTRALIA LIMITED REGISTERED
Korab Resources Ltd, a diversified exploration and mining company operating uranium, gold, zinc, lead, copper, cobalt, iron ore and magnesium projects announces that it has formed a wholly-owned subsidiary company called Uranium Australia Ltd which will hold the rights to uranium and thorium mineralisation within Korab Resources projects. Korab projects cover over 15,000 square kilometres in Northern Territory and Western Australia. In anticipation of the intended listing of Uranium Australia Ltd on ASX, the company has reserved an ASX listing code UAU.
URANIUM RIGHTS
It is anticipated that within the next 2 weeks Korab Resources will transfer to Uranium Australia Ltd 90% of its rights to any uranium and thorium mineralisation within its projects (the Rights). Projects included in the transfer are Green Alligator, Hercules, Tank Well, Lohengrin, Maitland, Batchelor, Throssell, Melrose and other projects that Korab may acquire within the 2 month period following the transfer of the Rights.
Korab will retain 10% free carried interest in the uranium and thorium rights until the bankable feasibility study (BFS) stage. Korab will have a right of first refusal to provide funding for the BFS and for the development of any uranium and thorium mineralisation within the projects included in the Rights transfer. As consideration for the Rights transfer Korab will receive 90,000,000 shares in Uranium Australia Ltd. In addition, it is anticipated that Korab will receive cash payment of $3,500,000.
FREE SHARES FOR KORAB SHAREHOLDERS
It is anticipated that Korab will distribute majority of the shares received from Uranium Australia to Korab shareholders who will then receive between 1.61 and 2 shares in Uranium Australia Ltd for every share held in Korab Resources Ltd. The cut-off date for this entitlement has not been set. It is anticipated that the date will be finalised within the next few weeks.
PRIORITY ENTITLEMENT OF KORAB SHAREHOLDERS TO SUBSCRIBE FOR SHARES IN URANIUM AUSTRALIA IPO
It is anticipated that Korab shareholders will receive priority in subscribing for Uranium Australia shares issued under the prospectus as part of the IPO. The exact level of the entitlement is yet to be finalised but (as a guide) it is anticipated that each shareholder's entitlement will depend on the number of Korab shares held by that shareholder. It is further anticipated that the minimum holding of Korab shares required to qualify for the IPO entitlement will be not less than 1,000 shares in Korab Resources. It is anticipated that the details of this entitlement will be finalised and announced to the ASX within the next few weeks.
