OmegaCorp seeks $8.8m in Mavuzi spin-off

PERTH-BASED uranium company OmegaCorp Ltd has revealed details of its plans to spin-off its subsidiary Mavuzi Resources Ltd in an $8.8 million public offer ahead of the OmegaCorp takeover by Canada’s Denison Mines Corp. Mavuzi, formerly Newco, will retain ownership of the company’s Mozambique Mavuzi Project and copper and gold mineral rights under the spin-off. Rights to uranium in the project will remain the property of Denison. The company will issue around 44 million shares at 20 cents each, with OmegaCorp shareholders entitled to subscribe for Mavuzi shares on a one for five basis to a maximum of 31 million shares. Denison will be entitled to subscribe for five million shares in the company, which will also issue eight million shares to the public. In addition to this, the company will issue one option exerciseable at 20 cents for every two shares subscribed to under the priority and public offers. OmegaCorp said it would not require shareholder approval for the spin-off, as the Mavusi projects are not a major company asset. Mavuzi’s proposed board reads like the current OmegaCorp board, with Ian Middlemass serving as chairman, Matthew Yates as managing director, Mark Pearce as a non-executive director and Luke Watson as company secretary. In an announcement, Mavusi said it would lodge a prospectus in mid-2007, subject to obtaining regulatory approval in Mozambique for the transfer of OmegaCorp Minerais Limitada (Mozambique) assets to the new company.