West Perth uranium startup WildHorse Energy Ltd has closed its initial public offer to raise $10 million early after attracting levels of interest in excess of $25 million.
West Perth uranium startup WildHorse Energy Ltd has closed its initial public offer to raise $10 million early after attracting levels of interest in excess of $25 million.
The full text of a company announcement is pasted below
WILDHORSE IPO OFFER CLOSES EARLY AND OVERSUBSCRIBED
WildHorse Energy Limited announced today its Prospectus to raise A$10 million by the issue of 25 million shares at 40 cents each has closed early with the level of interest in excess of $25 million.
The Prospectus, to raise funds to progress the development of its portfolio of uranium assets in USA and Hungary, was lodged on October 9 and was due to close on October 30 ahead of a listing on the ASX on November 13.
However, Managing Director Richard Pearce said that the response to the offer had been overwhelming.
"Clearly, the market responded very positively to the company's assets and strategy to capitalise on the established and increasing international demand for nuclear power through WildHorse's assets in pro-development regions like the US and Central Europe," he said.
"We have also secured, in addition to our largest current shareholder Macquarie Bank, other cornerstone Australian and UK institutional investors including Consolidated Press Holdings and Geiger Counter Limited. Geiger is a London listed fund which concentrates on investing in uranium and nuclear power opportunities.
Mr Pearce said the company remained committed to having three projects at feasibility stage within 24 months and at least two projects at decision to mine stage within four years. In addition, funds raised through the IPO will be spent confirming the assets' resource estimates, and making them JORC compliant."
WildHorse's key projects include Sweetwater and Bison Basin in uranium rich Wyoming, USA and several in the Western Mecsek area of southern Hungary.
At Sweetwater, WildHorse's ground covers approximately 70 per cent of the area of mineralised trends defined by Union Oil in the 1970s. At Bison Basin, WildHorse owns about 50 per cent of the claims covering the original resource area. These mineralised areas, based on historical mining inventories, contained between 30-40 million pounds (13,600 and 18,100 tonnes) of uranium.
In Hungary, WildHorse will complete a detailed program to evaluate its projects, and where possible will determine JORC compliant uranium resources.
Mr Pearce said WildHorse had specifically acquired projects in areas with a history of uranium mining and production and positive government and community support.
"We plan to exploit the increasing demand for cheap, efficient and emission free nuclear energy in these regions."
In the US, nuclear power and uranium are critical and expanding elements of the electricity markets. There are 103 operational nuclear power reactors, accounting for more than 25 per cent of the world's nuclear power generation and supplying more than 20% of the US power needs. A further 24 plants are either in construction or proposed.
"Wyoming, home to WildHorse's Sweetwater project, is the largest net energy producing state in the US. It is the biggest producer of uranium and coal and a major producer of gas and crude oil, with a long history of uranium mining," Mr Pearce said.
Hungary has four nuclear reactors generating more than 30 per cent of the country's electricity.
"Despite a long history of uranium production, Hungary currently lacks its own production to meet its nuclear power generation needs. In Europe, there is a general expansion in nuclear generating capacity with 200 plants either operational or planned. This capacity further increases demand for nearby uranium supplies."
WildHorse's IPO was managed by Argonaut.