Perth-based uranium company OmegaCorp Ltd has revealed the details of its plans to spin off its subsidiary Mavuzi Resources Ltd, in an $8.8 million initial 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 20c each, with OmegaCorp shareholders being entitles to subscirbe for Mavuzi shares on a one for five basis to a maximum of 31 million shares.
Denison will be entitled to subscribe for 5 million shares in the company, which will also issue 8 million shares to the public. In addition to this, the company will issue one option exerciseable at 20c for every two shares subscribed to under the priority and public offers.
OmegaCorp has informed the market that it will not require shareholder approval for the spin-off, as the Mavusi projects are not a major company asset.
Mavuzi's proposed board composition read's like the current OmegaCorp board, with Ian Middlemass serving as the spin-off's chairman, Matthew Yates employed as managing director, Mark Pearce as a non-executive director and Luke Watson serving as company secretary.
Mavusi said in an announcement 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.
Further to this, OmegaCorp will fund the IPO through an interest-free company loan, to be repaid in full immediately after the offer.
