Newera Uranium to raise $3m in IPO

Newera Uranium Ltd has lodged a prospectus with the ASIC to raise $3 million in its initial public offer to fund the exploration and evaluation of its uranium deposits.

The placement is for 15 million shares at an issue price of 20 cents each.

The company has secured a portfolio of uranium tenements from Cazaly Resources Ltd, across highly prospective ground in Western Australia and the Northern Territory, including the Lake Way project situated 16 kilometres south east of the Wiluna township.

Cazaly will retain a 30 per cent interest in Newera post listing through receiving 10 million shares as part consideration for the sale of assets to Newera.

Cazaly intends, subject to shareholder and regulatory approvals, to conduct an in-specie distribution of these shares to all Cazaly shareholders after Newera has been listed on the ASX for at least 6 months.

Cazaly has also secured for its shareholders an allocation of 3.75 million shares ($750,000) in Newera for Cazaly shareholders under a priority offer with such shares to be allocated on a firstcome- first-served basis.

Newera's directors include Martin Blakeman as managing director, Mark Maine as non-executive chairman and Greg Miles as non-executive director.

The priority offer closing date is the 8th June, while public offer closing date is the 19th June.

Quotation of shares on ASX is expected to commence on the 30th June.

Below is Cazaly's ASX announcement:

Newera Uranium Limited ("Newera") yesterday lodged a Prospectus with the ASIC to issue 15 million shares to raise $3 million.

Newera was formed in March 2006 to acquire, explore, evaluate and exploit its uranium deposits and surrounding exploration tenements as well as actively pursue the acquisition of additional local uranium assets and projects overseas.

The Company has secured a portfolio of uranium tenements from Cazaly Resources Limited ("Cazaly"), across highly prospective ground in Western Australia and the Northern Territory, including the Lake Way Project situated just 1.5 kilometres north of Nova Energy Limited's Lake Way uranium deposit. Cazaly will retain a 30% interest in Newera post listing through receiving 10 million shares as part consideration for the sale of assets to Newera and intends, subject to shareholder and regulatory approvals, to conduct an in-specie distribution of these shares to all Cazaly shareholders after Newera has been listed on the ASX for at least 6 months.

Newera's goal is to systematically build a uranium exploration and production company with assets in Australia and overseas.

Priority Offer
Cazaly has also secured for its shareholders an allocation of 3,750,000 shares ($750,000) in Newera for Cazaly shareholders under a priority offer with such shares to be allocated on a firstcome- first-served basis. Applications should be made for a minimum of 10,000 shares ($2,000) and a maximum of 75,000 shares ($15,000) with final allocations dependent upon the overall demand exhibited from Cazaly shareholders that apply. In the event that subscriptions are received for more than the $750,000 it is currently intended that allocations will be scaled back on a pro-rata basis and that where possible at least the minimum parcel of 10,000 shares will be allocated. Please note that applications will be treated on a first-come-first-served basis and that final allocation decisions will be at the sole discretion of the Newera board. Full details of the priority offer will be available in the Newera Prospectus (available at www.nru.com.au) which should be read in full. We encourage any Cazaly shareholders with investment interest in this opportunity to monitor the website for a copy of the lodged prospectus or to make contact with the company or its advisors as detailed in 1(b) below as soon as possible.

Intended Timetable
Should you be a Cazaly shareholder on the register at 5.00pm WST on Wednesday 17th May 2006 you will be entitled to apply for shares in Newera under the priority offer.
The anticipated timetable for the Newera IPO is;

Record Date for Priority Offer to Cazaly Shareholders: 17th May 2006
Priority and Public Offer Open for Applications (Opening Date): 25th May 2006
Priority Offer Closing Date: 8th June 2006
Public Offer Closing Date: 19h June 2006
Dispatch of Statements of Shareholdings: 23rd June 2006
Quotation of Shares on ASX expected to commence: 30th June 2006

It should be noted that these dates are subject to change without notice by the Newera board at any time. The Offers may close early given the current investment environment for Uranium stocks.