Newera $3m IPO closes early in readiness for ASX listing

The latest of a recent clutch of uranium hopefuls, Western Australian-headquartered Newera Uranium Ltd, has closed its $3 million IPO oversubscribed and ahead of schedule in preparation for its debut on the Australian Stock Exchange.

Newera was formed earlier this year to acquire and explore a portfolio of uranium-prospective tenements in Western Australia and the Northern Territory.

The Company lodged its Prospectus on May 17 for the issue of 15 million shares at 20 cents each to raise $3 million.

This comprised a priority offer of 3.75 million shares to shareholders of Cazaly Resources, the vendor of the uranium projects, and a public offer of 11.25 million shares.

Cazaly will receive 10 million shares in Newera and Cazaly shareholders had the opportunity to apply for a minimum of 10,000 and maximum of 75,000 shares on a first come, first served basis.

Newera managing director Martin Blakeman said he was delighted with the investor response to the Newera IPO.

"In our view, the strength of applications reflects a change in perception within the investor community about uranium as an energy source - as reflected in the current national debate regarding the viability of a nuclear power industry in Australia," Mr Blakeman said.

Mr Blakeman said the investment fundamentals of Newera's uranium portfolio were underpinned by the strong increase in the uranium price over the past two years and the fact that its projects were located in areas with proven uranium potential and strong indications of mineralisation.

Under the agreement between Newera and Cazaly, subject to its successful ASX listing, Newera is to acquire an initial 35 per cent interest in Cazaly's uranium portfolio, by paying $75,000 to Cazaly and issuing 10 million Newera shares on listing with additional farm-in rights to earn up to 80 per cent of the three separate project areas by spending $1 million on each of the projects over 5 years.

Cazaly will also retain a 2 per cent FOB royalty on exported product.

Newera's portfolio includes the Lake Way project, located near Wiluna in WA, and the Gascoyne-Pells Range project, the Gacoyne-Jailor Bore project, and the Quartz Hill project near Alice Springs.

AN EXPERIENCED TEAM

Newera is headed by an experienced management team comprising Managing Director, Martin Blakeman, an experienced mining industry professional with over 22 years junior company experience, including as founding director of Metex Resources NL and Harmark Pty Ltd, the founder and former controlling shareholder of Forrestania Gold NL and Kagara Ltd (now successful base metals producer Kagara Zinc Ltd).

The Chairman is Mark Maine, an Accountant with extensive public company experience, including as executive director of emerging gold explorer Peak Resources Ltd and non-executive director roles with Pacrim Energy Ltd and KLM Group Ltd, as well as being company secretary of Victorian gold company, Goldstar Resources NL.

The other non-executive director is Greg Miles, a geologist with over 13 years experience in minerals exploration who is currently Exploration Manager of Cazaly Resources. Mr Miles commenced his career with Plutonic Resources Limited and was part of the team that discovered the 2.3Moz Centenary deposit in the Yandal Belt in WA.

THE FULL MEDIA RELEASE APPEARS BELOW.

NEWERA URANIUM SET FOR EARLY ASX LISTING AS INVESTORS STRONGLY SUPPORT $3M IPO
ISSUE CLOSES HEAVILY OVERSUBSCRIBED AHEAD OF IMMINENT ASX LISTING

- Strong investor response both to Cazaly priority offer and public share offer - issue closes early and heavily oversubscribed.

- ASX listing for new uranium company expected shortly - well ahead of schedule.

Newly launched Australian uranium explorer, Newera Uranium Limited, is set to make its debut on the Australian Stock Exchange shortly - well ahead of schedule - after closing its $3 million IPO significantly oversubscribed, reflecting a growing wave of positive investor sentiment in Australia towards uranium as a key potential future energy source.

Newera, which was formed earlier this year to acquire and explore a portfolio of uranium-prospective tenements in Western Australia and the Northern Territory, has closed its public share offer after receiving applications for well in excess of the $3 million being sought.

The Company lodged its Prospectus on 17 May for the issue of 15 million shares at 20 cents each to raise $3 million, including a priority offer of 3.75 million shares to shareholders of Cazaly Resources, the vendor of the uranium projects, and a public offer of 11.25 million shares. Under the Prospectus, Cazaly will receive 10 million shares in Newera and Cazaly shareholders had the opportunity to apply for a minimum of 10,000 and maximum of 75,000 shares on a first come, first served basis.

Newera's Managing Director, senior Australian mining and exploration executive Martin Blakeman, said he was delighted with the investor response to the Newera IPO.

"In our view, the strength of applications reflects a change in perception within the investor community about uranium as an energy source - as reflected in the current national debate regarding the viability of a nuclear power industry in Australia," Mr Blakeman commented.

This week, Prime Minister John Howard announced the appointment of former Telstra chief executive, Dr Ziggy Switkowski, to head the Federal Government's inquiry into the viability of a domestic nuclear industry.

"There is no doubt that the uranium industry has changed significantly in recent years," Mr Blakeman said. "Historically out of favour in social and political circles, nuclear power - when produced under stringent controls - is beginning to be increasingly recognised as a safe and practical alternative to high emission, ozone destroying, fossil fuel energy production."

"In our view, as low greenhouse emission energy production becomes increasingly important amongst world nations, uranium as a source of energy generation will become a more prevalent alternative to traditional higher emission technologies," he added.

"From a uranium explorer's perspective, the global reduction in uranium stockpiles as the industry consumes increasing volumes to fulfil supply shortfalls from production is leading to a reassessment of old mines, previously undeveloped uranium deposits and uranium prospective geological environments - providing a significant impetus for new uranium exploration."

Mr Blakeman said the investment fundamentals of Newera's uranium portfolio were underpinned by the strong increase in the uranium price from some US$10/pound to over US$40/pound over the past two years and the fact that its projects were located in areas with proven uranium potential and strong indications of mineralization.

"We have assembled a quality portfolio in proven mineral districts in Western Australia and the Northern Territory," he said. Australia is one of the world's major uranium producers and exporters, and controls approximately 30% of the world's recoverable uranium resources.

Under the agreement between Newera and Cazaly, subject to its successful ASX listing, Newera is to acquire an initial 35% interest in Cazaly's uranium portfolio, by paying $75,000 to Cazaly and issuing 10 million Newera shares on listing with additional farm-in rights to earn up to 80% of the three separate project areas by spending $1 million on each of the projects over 5 years. Cazaly will also retain a 2% FOB royalty on exported product.

Newera's portfolio includes the Lake Way Project, located near Wiluna in Western Australia, outlined as a quality ground package in a region known to host world-class uranium deposits, immediately north of the Lake Way deposit held by Nova Energy. This region also hosts the world-class Yeelirrie uranium deposit.

Other projects include the Gascoyne-Pells Range Project, where the principal target is roll-front sandstone-hosted uranium deposits, the Gacoyne-Jailor Bore Project, which is prospective for calcrete-hosted uranium mineralization, and the Quartz Hill Projet, which contains a uranium-rich pegmatite within the Arunta Province in the Harts Ranges, 160km north-east of Alice Springs.

One of the world's largest uranium deposits, the Rossing deposit in Namibia, is pegmatite-hosted.

AN EXPERIENCED TEAM

Newera is headed by an experienced management team comprising Managing Director, Martin Blakeman, an experienced mining industry professional with over 22 years junior company experience, including as founding director of Metex Resources NL and Harmark Pty Ltd, the founder and former controlling shareholder of Forrestania Gold NL and Kagara Ltd (now successful base metals producer Kagara Zinc Ltd).

The Chairman is Mark Maine, an Accountant with extensive public company experience, including as executive director of emerging gold explorer Peak Resources Ltd and non-executive director roles with Pacrim Energy Ltd and KLM Group Ltd, as well as being company secretary of Victorian gold company, Goldstar Resources NL.

The other non-executive director is Greg Miles, a geologist with over 13 years experience in minerals exploration who is currently Exploration Manager of Cazaly Resources. Mr Miles commenced his career with Plutonic Resources Limited and was part of the team that discovered the 2.3Moz Centenary deposit in the Yandal Belt in WA.