Western Uranium launches $3m IPO

Perth-based exploration company Western Uranium Ltd has launched a prospectus, aiming to raise up to $3 million for exploration and drilling of the Pilbara's Coppermine Bore project.

The company will have the right to earn a 50 per cent stake in the project from Prairie Downs Metals Ltd through the expenditure of $1 million. In order to do this, Western will issue 12.5 million shares at 20c each, 7.5 million of which will be offered in priority to Prairie Downs shareholders.

The company is chaired by lawyer Jeremy Shirvington, and is joined on the board by Mark Hansen and Alec Pismiris, all of whom are also directors of Prairie Downs.

Patersons Securities Ltd are lead managers of the float with Ernst and Young acting as auditors.

The prospectus has been lodged at a time of heated debate over uranium, with Federal Labor leader Kim Beazley seeking to end the party's long-standing policy that Australia may only have three mines. The WA Government has remained steadfast in its opposition to uranium mining here.

Today, WA Chamber of Commerce and Industry executive director of policy Deidre Willmott has described Premier Alan Carpenter's attitude to uranium mining as "short sighted and void of useful argument".

Meanwhile, it has also been revealed today that a Labor document on uranium mining prepared before Mr Beazley's policy launch hinted at storing nuclear waste in Australia and identifies sites in Queensland and Western Australia for new mines.