24/07/2007 - 14:21

North Australian spins out uranium assets in $9m IPO

24/07/2007 - 14:21

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East Perth-based diamonds explorer North Australian Diamonds Ltd will spin-off its Northern Territory uranium assets through an initial public offer, raising up to $9 million, the company announced today.

East Perth-based diamonds explorer North Australian Diamonds Ltd will spin-off its Northern Territory uranium assets through an initial public offer, raising up to $9 million, the company announced today.

The company announced it would seek to raise $6 million through the issue of 30 million shares at 20 cents each with up to a further $3 million or 15 million shares in oversubscriptions.

North Australian shareholders will have the right to participate in a Priority Offer (of one Top End share for every 20 North Australian shares held at the record date), with North Australian retaining approximately 25 per cent of the issued shares in Top End in recognition of assignment of the non-diamond mineral rights to Top End.

Top End will control, through farm-in arrangements with North Australian, a Northern Territorty uranium portfolio covering approximately 30,000 sqkm over the Arnhem Land Project Area and the McArthur South Project Area.

 

 

The full text of a North Australian announcement is pasted below

Australian based diamond exploration and development company North Australian Diamonds Limited ("North Australian" or " the company") has confirmed its intention to spinout its wholly owned subsidiary Top End Uranium Limited (Top End) as part of a A$9m initial public offering (IPO).

Under the terms of the IPO, Top End will seek to raise a A$6 million through the issue of 30 million shares at A$0.20 per share with up to a further $3 million or 15 million shares in oversubscriptions.

North Australian shareholders will have the right to participate in a Priority Entitlement Offer (of one Top End share for every 20 North Australian shares held at the record date), with North Australian retaining approximately 25 per cent of the issued shares in Top End in recognition of assignment of the non-diamond mineral rights to Top End.

Applications to this offer must meet ASX marketable parcel guidelines, and as such North Australian shareholders will need to hold at least 50,000 shares to take part in this offer. A marketable parcel will be $500.

Top End will control, through farm-in arrangements with North Australian, one of the largest portfolios of highly prospective exploration tenements in the Northern Territory, Australia. Its tenement holding covers an area aggregating approximately 30,000km² across two project areas (Arnhem Land Project Area and the McArthur South Project Area).

North Australian primarily selected these tenements for their diamond potential, however following an initial evaluation of these tenements, together with a review of relevant historical data the company was able to confirm that they also offer an excellent opportunity to explore for uranium and, in some instances, base metals.

North Australian Diamonds' Chairman John Hopkins believes the spin out of Top End will ensure that a dedicated management and technical team will be able to focus on not only exploring this highly prospective region, but also ensuring access to areas that have been subject to only limited exploration in the past 30 years.

"These exceptionally large tenement holdings are predominately within a region that is host to significant uranium mineralisation, and in some instances 'world class' uranium deposits," Mr Hopkins said.

"The spin-off and ASX listing of Top End Uranium Limited will create a publicly listed company that will aim to be a premier Arnhem Land explorer for uranium.

"The funds raised through the IPO will enable Top End to undertake uranium and in some instances base metals exploration campaigns on North Australian Diamond's extensive tenement interests not only in Arnhem Land but also in the McArthur region of the Northern Territory.

Aggressive Work Programme

Subject to the successive grant of the Arnhem Land tenements, and following assessment of all previously flown radiometric survey data, the company will commission detailed airborne radiometric surveys over selected areas. These surveys will not only target unconformity related uranium mineralisation but also the more broadly defined unconformity type deposits which are associated with intrusive mafic rocks. Anomalous uranium responses will be followed by ground reconnaissance and drill testing where warranted.

In the McArthur South project tenements, Westmoreland type uranium mineralisation associated with basal conglomerates and the Seigal Volcanics will be targeted. The presence of these units occurring under shallow cover sequences is interpreted from available geophysical data sets. If confirmed by drilling, then detailed airborne geophysical surveys will be undertaken in association with structural mapping to identify potential uranium mineralisation traps which can than be drill tested.

Reconnaissance stream sediment sampling for multi-element detection will also be conducted over the tenement areas, where considered appropriate.

Allotment of shares

Top End Uranium Ltd. has appointed Ascot Securities Pty. Ltd. to manage its proposed IPO with the allotment of shares to be completed on a first come first served basis to all shareholders expressing interest within 14 days of commencement of the offer. Any shares not taken up under the priority offer will be offered to the public by Ascot Securities. Ascot Securities will write to all shareholders with details soon.

Shareholders and investors should note that the offer of securities made by Top End will be made under a disclosure document lodged with Australian Securities and Investments Commission. It is anticipated that this document will be lodged within 60 days.

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