09/10/2009 - 08:48

Mega plans $53m raising for WA uranium

09/10/2009 - 08:48

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Canada's Mega Uranium has stepped up its bid to become the state's first uranium miner with the launch of a $52.5 million capital raising.

Mega plans $53m raising for WA uranium

Canada's Mega Uranium has stepped up its bid to become the state's first uranium miner with the launch of a $52.5 million capital raising.

Overnight, the company revealed plans to raise $C50 million ($A52.5 million) through a public and private placement to North American investors.

Funds raised will be predominately used to complete feasibility studies on the Lake Maitland uranium project in the eastern Goldfields, which could be in production as early as 2011.

The uranium project is a joint venture with the Japan Australian Uranium Resources Development Co and ITOCHU Corporation.

Funds will also be used for Mega's other Australian assets and for working capital.

 

 

The announcement is below:

 

 

Key Points:

- Mega Uranium to raise CAD$50 million (approximately A$52.5 million) through a public offering and private placement to key North American investors;

- Capital Raising to be underwritten by a syndicate of North American underwriters led by RBC Capital Markets and UBS Securities Canada Inc, and including Macquarie Capital Markets Canada Inc, Thomas Weisel Partners Canada Inc, Haywood Securities Inc, Salman Partners Inc and Dundee Securities Corporation; and

- Funds raised to be applied to development of its Australian assets and also completion of Feasibility Studies for the Lake Maitland project in Western Australia.

Toronto based uranium company Mega Uranium Ltd (TSX: MGA) ("Mega" or "the company") has overnight announced plans to raise CAD$50 million (A$52.5 million) through a public offering and a private placement to key North American.

The shares will be offered by way of a Prospectus and also by a private placement basis to key North American investors. The offer comprises one share and one-half of one share warrant, each whole share warrant entitling the investor to acquire one common share, to be exercised within five (5) years following closing of the Prospectus. Further details of the offer including pricing of the shares and exercise price of the warrants will be announced upon closing of the Prospectus on 14 October 2009.

The offering will be underwritten by a syndicate of North American underwriters led by RBC Capital Markets and UBS Securities Canada Inc, and including Macquarie Capital Markets Canada Inc, Thomas Weisel Partners Canada Inc, Haywood Securities Inc, Salman Partners Inc and Dundee Securities Corporation.

Mega intends to use the proceeds of the capital raising for the completion of feasibility studies and other development activities in respect of its Lake Maitland Project in Western Australia, development activities at its other Australian assets, and for general corporate purposes.

The Lake Maitland Project is located in the Eastern Goldfields 100km south-east of Wiluna and 90km north of Leinster in Western Australia and is expected to be in production in late 2011/ early 2012.

In mid 2009 Mega announced it had signed a farm-in and joint venture agreement with JAURD (the Japan Australia Uranium Resources Development Co. Ltd.) and ITOCHU Corporation (ITOCHU) that would see JAURD and ITOCHU earn a 35% interest in the Lake Maitland Project by paying US$49 million.

Completion of the offering is subject to the satisfaction of a number of conditions, including receipt of all necessary regulatory approvals, including the Toronto Stock Exchange.

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