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IONDRIVE LIMITED Capital/Financing Update 2007
65132_rns_2007-04-01_645e771f-aea2-4e6e-bab0-0d328cafd448.pdf
Capital/Financing Update
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2nd April 2007
Southern Uranium Limited Media Release: Southern Uranium Lists Tomorrow
The following media release by Southern Uranium Limited (ASX:SNU) announces it will list on the ASX tomorrow.
Southern Gold Limited (ASX:SAU) will retain 39% equity (45 million shares) in Southern Uranium at listing.
For further information please contact:
Mr Stephen Biggins Managing Director Phone: +61 (0) 8 8132 0044 Fax: +61 (0) 8 8132 0199
Please visit our website at www.southerngold.com.au
Southern Gold Limited ABN 30 107 424 519
58 North Terrace Kent Town South Australia 5067 South Australia 5071
PO Box 750 Kent Town
email: [email protected] telephone 08 8132 0044 www:southerngold.com.au
facsimilie 08 8132 0199
FOR IMMEDIATE RELEASE Monday 2 April 2007
OVERSUBSCRIBED SOUTHERN URANIUM LISTS
TOMORROW - LAUNCHES EXPLORATION PROGRAM
The newest Australian uranium explorer to join the ASX, Southern Uranium Limited, will list on the Exchange tomorrow (Tuesday 3 April 2007).
The Company, which has just completed an oversubscribed \$14 million Initial Public Offer (IPO), plans a mid-year start to its exploration drilling program.
Southern Uranium (ASX code "SNU") announced today it would commence separate exploration programs on its uranium prospective tenements in the Gawler Craton of South Australia.
These projects have been transferred from Southern Gold Limited (ASX Code "SAU") which retains 39% equity in Southern Uranium as a result.
"We hold acreage in premier uranium provinces and there is considerable market expectation in the current global demand-exceed-supply environment to get on the ground as soon as possible," Southern Uranium's Managing Director, Mr John Anderson, said today.
"Our own expectation is that the uranium demand-supply imbalance will persist for some time, enhanced by increasing political and public pressure to reduce carbon emissions." Mr Anderson said.
"This supply pressure will underpin the uranium oxide price on a much more longer-term cycle than historically the case."
Southern Uranium's 20 tenements cover more than 10,000 square kilometres of uranium prospective acreage with the IPO proceeds to be divided between exploration and potential uranium project acquisitions.
"The success of the IPO ensures Southern Uranium is highly liquid and can mount and maintain aggressive uranium exploration programs," Mr Anderson said
issued through FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311 231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 [email protected]
"In terms of acquisitions, we will favour those opportunities that expose Southern Uranium to international contacts in the global uranium sector which are best able to bring to the table, a high level of expertise in uranium financing and marketing."
The initial shareholder base for Southern Uranium's listing includes 20 million shares or 17.4% of the new explorer, held by a cornerstone investment consortium, CITIC Australia Pty Ltd, a subsidiary of the huge China investment house, CITIC, and Queensland-owned and operated resource focused investment group, Talbot Group Holdings Pty Ltd.
The tenement vendor, Southern Gold, in which Talbot and CITIC are also shareholders, will hold 45 million shares of the total of 115 million Southern Uranium shares to be on issue at listing tomorrow.
Mid year start to exploration
Southern Uranium has delineated 10 initial targets with exploration potential for iron oxide copper gold uranium (IOCGU) deposits of the Olympic Dam style. The Company also has substantial holdings over palaeochannels with potential for sandstone hosted roll front style uranium deposits.
Work will commence in South Australia next month to complete gravity definition of the Cocky Swamp IOCGU target near Olympic Dam to evaluate the target for drill testing.
The highest priority IOCGU targets, the G1 and G2 gravity targets in the Southern Gawler Arc project near Kimba, will be prepared for diamond drill testing planned in June.
The other IOCGU targets will be further investigated with gravity and ground mapping to advance the prospects to drill testing later in 2007.
Drilling of the palaeochannels in the Challenger West Joint Venture project in South Australia will recommence immediately. Airborne Electromagnetic data from recent surveys at Yarlbrinda South and Warrior South will be compiled to refine the interpretation of prospective palaeochannels to enable the design of first pass drilling also later in the year.
MEDIA CONTACTS:
John Anderson Managing Director Southern Uranium Ltd 08-8132 0044 / 0408 879 024 Kevin Skinner Field Public Relations 08-8234 9555 or 0414 822 631
issued through FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311 231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 [email protected]