Resolute Mining has lodged a prospectus seeking $8 million for the spin off of its uranium assets through a new corporate vehicle Valhalla Uranium Ltd.
Resolute Mining has lodged a prospectus seeking $8 million for the spin off of its uranium assets through a new corporate vehicle Valhalla Uranium Ltd.
Resolute will hold 100,000,000 Valhalla Uranium shares (83.33% of the
Company, post the issue) which will be subject to an escrow period of 24 months.
The full release reads:
Resolute Mining advises that Valhalla Uranium Ltd has today lodged its prospectus with
the ASIC. After the expiry of the exposure period, the prospectus will be printed and is
expected to be available for distribution from 18 November 2005.
The prospectus is for an offer of up to 20,000,000 Valhalla Uranium shares at an issue
price of 40 cents each to raise $8,000,000.
Resolute Mining will hold 100,000,000 Valhalla Uranium shares (83.33% of the
Company, post the issue) which will be subject to an escrow period of 24 months.
Resolute Mining shareholders are invited to apply for shares in two ways.
A Priority Offer of 17,500,000 shares is to be set aside for Resolute Mining
shareholders to subscribe for Valhalla Uranium shares. Due to the large number of
Resolute Mining shareholders and the relatively modest amount to be raised it is not
possible to make this available to all Resolute Mining shareholders.
Therefore only Resolute Mining shareholders holding at least 10,000 Resolute Mining
shares and registered at the close of business on the Priority Entitlement Date of
14 November 2005 will be made a Priority Offer.
The Priority Offer to these shareholders will be for a minimum application of 5,000
shares ($2,000) and a balance of further shares pro rata to their Resolute Mining
shareholding.
Applications under the Priority Offer can only be made on the personalised yellow
Priority Offer Application Form which will be sent to the eligible Resolute Mining
shareholders with the prospectus. This Form will show the total minimum application
amount for that shareholder.
RESOLUTE MINING LIMITED
A.C.N. 097 088 689 A.B.N. 39 097 088 689
4th Floor, The BGC Centre, 28 The Esplanade, Perth, Western Australia 6000. PO Box 7232 Cloisters Square, Perth, Western Australia 6850.
Telephone +61 8 9261 6100 Facsimile +61 8 9322 7541 Email : contact@resolute-ltd.com.au
A total of 2,500,000 Shares plus any shares not subscribed for under the Priority Offer
will be available under the Public Offer. The Public Offer is open to public investors
including Resolute Mining shareholders. Those Resolute Mining shareholders applying
under the Public Offer will be given favourable consideration for allocations.
The Prospectus for the Public Offer is available from Patersons Securities Limited or in
electronic form at www.psl.com.au and www.valhallauranium.com.au (including during
the exposure period).
The Offer is planned to close in early December 2005 with trading in Valhalla Uranium
shares expected to commence prior to the end of the year.
The original announcement about two months ago read:
Resolute Mining Limited is pleased to announce that it has incorporated a new
subsidiary Valhalla Uranium Limited to hold all its uranium assets. It is proposed that
Valhalla Uranium raise approximately $7 million through an initial public offering, with its
shares to be listed on the Australian Stock Exchange.
Resolute Mining has joint venture interests in a number of advanced and prospective
uranium projects, more details of which are provided in the attached summary. These
have been essentially dormant assets of the group for over a decade.
The outlook for uranium and the level of activity in that sector has improved
considerably over the last year. The Board considers that a separate listing of the
uranium assets will ensure that they have adequate funding, allow for a better focus on
their development and enable a more transparent market value to be placed on them.
Resolute Mining will retain a significant holding in Valhalla Uranium following its listing.
Resolute Mining has appointed Paterson Securities Limited to assist it with the listing of
Valhalla Uranium and preparation of a prospectus for the capital raising is underway.
More details on the timetable for the issue and the priority arrangements for Resolute
Mining shareholders to subscribe for shares in Valhalla Uranium will be announced
once they are finalised.
PETER SULLIVAN
Chief Executive Officer
23 September 2005
