Mavuzi Resources Ltd, the spin-off of Perth-based uranium company OmegaCorp Ltd, has issued a prospectus for its initial public offer, aiming to raise $8.8 million for further exploration and development.
The company will issue around 44 million shares at 20 cents each, with OmegaCorp shareholders being entitled to subscribe for Mavuzi shares on a one for five basis to a maximum of 31 million shares.
Canadian company Denison Mines Corp, which holds 33 per cent of the shares in OmegaCorp after making an unsuccessful takeover bid for the company, will also be entitled to subscribe for up to 5 million shares and 2.5 million listed options in the company.
Mavuzi will also accept over-subscriptions of up to $1.6 million through the issue of 8 million additional shares at 20 cents each, together with 4 million options.
For every two shares issued, shareholders will receive one free listed option exercisable at 20 cents up until June 30.
Mavuzi, which will focus on two copper-gold assets in Mozambique, has retained much of the 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.
OmegaCorp will fund the IPO through an interest-free company loan, to be repaid in full immediately after the offer.
The news comes one day after UK-based Central African Mining and Exploration Company plc lodged its bidder's statement for OmegaCorp.
Its bid was valued at $1.44 per share, well above Denison's $1.15 per share bid.
