Adelaide, Oct 6, 2006 (ABN Newswire) - One of the largest capital raisings for a new uranium explorer in Australia has already exceeded its minimum target ahead of its currently scheduled close later this month.

Eromanga Uranium Limited (ASX: ERO) - which is in the market to raise up to $15 million to fund a significant exploration program in South Australia and the Northern Territory - said today its current investor commitments would see its Initial Public Offer (IPO) comfortably exceed its minimum requirement of $10 million.
"The Offer is not due to close until Monday week, the 16th October so this is a very strong endorsement of our capital raising and work programs," Eromanga Uranium's Managing Director, Mr Kevin Lines, said today.

"On a broader note, it also reinforces the market's emerging recognition that new Australian-based uranium exploration companies with solid assets have the potential to unlock discoveries able to satisfy a resurgent international nuclear energy sector," Mr Lines said.

"We are pleased to have already achieved our minimum as this is a large capital raising in a relatively "new" commodity sector so there has been considerable interest in how this IPO performs.

"With the commitments to date, and when all other Offer conditions are satisfied,, Eromanga should be on the ASX within weeks and shortly after be able to commence our extensive exploration programs."

The Eromanga IPO is offering up to 60 million new ordinary shares at an
issue price of 25 cents each to raise $15 million with a minimum subscription of $10 million and the right to accept over-subscriptions up to $5 million.

The Offer opened on 14 August but was extended to Monday week as part of additional market interest identified by sponsoring brokers, CommSec and Cameron Stockbrokers.

The IPO includes a Priority offer to shareholders in listed explorers, Maximus Resources Limited and Flinders Diamonds Limited.

Eromanga has secured a large tenement portfolio of over 20,000 square kilometres and covering five project areas in the heart of uranium exploration and mining provinces in South Australia and the Northern Territory.

The suite of Eromanga assets includes a 70% earn-in on four projects covering 16,000 km2 in the Eromanga Basin, an area largely untested and highly prospective for sedimentary uranium.

In addition, Eromanga is earning a 50% interest in the flagship Billa Kalina project over 4,000 km2 in SA's Gawler Craton area and which has potential for early drilling of sedimentary uranium and Olympic Dam style copper, gold, uranium mineralisation.

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