Subiaco-based uranium and base metals explorer Uramet Minerals Ltd will raise $7 million in its initial public offer to fund exploration of its Northern Territory and Queensland tenements.
The company, which will issue 35 million shares at 20 cents each, was spun out from Subiaco's Elkedra Diamonds NL earlier this year, and will explore tenements in the Georgina Basin which the company says have already been thoroughly explored for diamonds.
Elkedra's chief financial officer Sam Randazzo said in April the spin off would create an opportunity to unlock the value of the uranium and base metal assets.
"While we made the decision to transfer the bulk of our exploration assets, comprising some prospective uranium and base metal projects to Uramet, Elkedra has retained the diamond rights on these tenements, so we will be continuing with our ongoing diamond exploration activities within Australia," he said.
Elkedra, which mines for diamonds in Brazil, will retain about 38 per cent of Uramet following the listing.
Uramet will also reserve 25 per cents of shares issued under the prospectus - 8.7 million shares - for Elkedra shareholders in a pro-rata priority offer.
Mr Randazzo will and Elkedra's executive chairman Don Best will serve on the Uramet board in a non-executive capacity, along with Matrix Metals Ltd director Richard Proctor. Former general manager Asia for MIM Exploration Bill Hewitt will serve as managing director.
The company has set a minimum subscription rate for the offer of 25,000,000 Shares at 20 cents each to raise $5 million, and the offer is not underwritten.
Uramet has retained LinQ Corporate Pty Ltd as its corporate adviser, with Grant Thornton serving as Investigating Accountants And Auditors, and Deacons providing legal advice.
The offer opens today, May 10, with the priority offer closing on May 25 and the public offer closing June 6.
