Power Resources in positive ASX debut

Shares in Applecross-based uranium explorer Power Resources Ltd made a strong debut on the Australian Securities Exchange today, opening at 27 cents or more than 25 per cent up on their offer price.

Its shares eased down slightly to close at 25 cents each.

The listing follows a successful $2.2 million initial public offer in November 2007, in which 11 million ordinary fully paid shares in the company were subscribed by investors at 20 cents per share.

The company did not accept oversubscriptions.

Power has a 100 per cent interest in two projects (one granted and one application) in Western Australia that are
considered highly prospective for sandstone hosted uranium and deposits.

The first is the Uaroo project, located 25 kilometres north of the Paladin Resources Ltd-owned Manyingee deposit in the Gascoyne region of WA, which contains a published JORC compliant indicated resource estimate of 8,080 tonnes of contained uranium oxide grading 1,000ppm, and an inferred resource estimate of 2,810 tonnes of uranium oxide grading at 500ppm.

Similar uranium mineralisation is also hosted at the Scimitar Resources Ltd-owned Bennetts Well deposit about 15 kilometres northwest of Power's uaroo project.

Power's second project (which consists of applications for four tenements) is the Oobagooma project in the Canning Basin area of the Kimberley that adjoins and surrounds the Paladin-owned Oobagooma deposit.

Power is chaired by accountant Vincent Hyde, who is a director of ASX-listed Prime Minerals Ltd, Ironbark Gold Ltd and Blaze International Ltd.

He is joined on the board by accountant Cecil Che-Cheun Lee and former business consultant Warren Dunne, both acting in a non-executive director capacity.

Pinnacle Equities Pty Ltd acted as manager to the issue with Pullinger Redhead Lucas acting as solictor and HLB Mann Judd as accountant and auditor.