Perth, Feb 2, 2006 AEST (ABN Newswire) - Oxiana Limited (ASX: OXR)("Oxiana") and Minotaur Exploration Limited (ASX: MEP) ("Minotaur Exploration") are pleased to announce the proposed float of Toro Energy Limited ("Toro Energy" and the "Company"), formed through the amalgamation of their uranium interests in the Gawler and Curnamona Cratons of South Australia, one of the world's most prospective uranium regions.
Toro Energy proposes to raise $18 million through an initial public offering of 72 million shares at $0.25 per share. The offer is fully underwritten by Lands Kirwan Tong Stockbrokers Pty Limited and Taylor Collison Limited. Oxiana and Minotaur Exploration will each retain an approximate 25% shareholding in Toro Energy following its listing.
Toro Energy aims to build a successful uranium exploration and mining company through:
- exploration of its extensive tenement holdings, some of which are drill ready;
- the pursuit of uranium acquisition and development opportunities;
- assembly of a team of experienced uranium and mining industry professionals, led by its Managing Director, Mr Greg Hall;
- accessing the skills base of its major shareholders, Oxiana, one of the largest resource companies in Australia with a strong record in corporate and project development, and Minotaur Exploration, one of the leading explorers in South Australia with a successful exploration record; and
- efficient utilisation of its significant cash resources.
Toro Energy has lodged a copy of the prospectus with the Australian Securities and Investment Commission ("ASIC") earlier today. The offer will open on 20 February, 2006. The anticipated closing date is 10 March, 2006 although Toro Energy reserves the right to close the offer early if it is fully subscribed.
Investors wishing to acquire shares must complete the relevant application form that will be in or accompanying the prospectus.
The Offer is being structured primarily as a priority offer to Oxiana and Minotaur Exploration eligible shareholders. Eligible shareholders will receive a copy of the prospectus in the mail around the time of the offer opening date, together with a priority application form to apply for shares in Toro Energy.
Public investors will have an opportunity to participate in the offer by obtaining a copy of the prospectus from either of the underwriters, by downloading an electronic copy from the Toro Energy website: www.toroenergy.com.au, or by contacting either the Company (info@toroenergy.com.au) or the share registrar (Computershare Investor Services Pty Ltd).
The offer is conditional on regulatory and Minotaur shareholder approval for the transfer of its uranium interests to Toro Energy. Further detail of the structure of the offer and the proposed offer timetable is contained in the prospectus.
Upon listing, Toro Energy will hold the rights to explore for, mine and process uranium on over 26,000 square kilometres in the Gawler and Curnamona Cratons. Oxiana will contribute the uranium rights from its four Mt Woods tenements (excluding the Prominent Hill mining lease). Minotaur Exploration will contribute the uranium rights from its extensive tenement and joint venture interests. These holdings are highlighted in the map attached to this announcement. A schedule of Toro Energy's tenements, and joint venture interests and partners is also attached.
Toro Energy's tenement interests are considered prospective for a number of different styles of uranium mineralisation, as found at the Olympic Dam project and the Prominent Hill deposit in the Gawler Craton, and as found at the Beverley and former Radium Hill mines, and the Honeymoon deposit, in the Curnamona Craton.
Toro Energy will be led by a Board and management team with a strong record of exploration, operational and corporate success, with extensive experience in the Australian resources industry:
Dr Ian Gould Non-executive ChairmanMr Greg Hall Managing DirectorMr Derek Carter Non-executive DirectorMr Owen Hegarty Non-executive Director
Dr Gould has over 36 years experience in senior executive positions in the minerals industry, including 17 years in the CRA / Rio Tinto Group, where he was Managing Director of Comalco's bauxite and alumina interests and then Group Executive responsible for exploration, before his appointment as the first Managing Director - Australia for Rio Tinto. Dr Gould was subsequently Managing Director of the Normandy Mining Group, before his retirement in 2000.
Mr Hall, a mining engineer, has extensive uranium industry experience in Australia including over ten years in senior marketing and operations management roles with ERA Ltd, at Ranger and Jabiluka, and with WMC Resources Ltd, at Olympic Dam.
Toro Energy will be the primary vehicle of Oxiana and Minotaur Exploration for investment in the Australian uranium sector. Oxiana and Minotaur Exploration consider that a separate listing of their uranium interests will advance their development and enable a more transparent market value to be placed on them as well as providing their shareholders with an attractive option to invest in a uranium focused company.
Whilst the Company's initial focus will be on exploring its highly prospective tenement interests, some of which are drill ready, Toro Energy will also maintain a watching brief over the uranium sector in Australia for other development and acquisition opportunities.
The market outlook for uranium has strengthened considerably over the last 3 years, with uranium spot prices having increased from US$10 to over US$35 per pound. This has attracted considerable market activity in Australia over the last 12 months with a number of junior uranium company floats.
Toro Energy will seek to be an active participant in the consolidation of the Australian uranium sector (via both direct and indirect project equity investments as appropriate).
A detailed description of Toro Energy's tenement interests, and the Company's proposed objectives and activities, is outlined in the prospectus.
Oxiana and Minotaur Exploration have appointed Gryphon Partners Pty Ltd as their financial adviser in relation to the float of Toro Energy.
About Minotaur Exploration Ltd
Minotaur Exploration Ltd (ASX:MEP) is a public company listed on the Australian Securities Exchange (ASX) under the market code MEP. MEP commenced trading on ASX on 25 February 2005. Minotaur has extensive minerals exploration tenements in South Australia, New South Wales, Victoria, Queensland and Western Australia.
The Company is governed by a Board of Directors according to Australian Corporate law and the Listing Rules of the ASX. Minotaur specialises in application of innovative geophysical techniques to locate virgin mineralisation deep below the surface. Often, economic mineral deposits are contained within basement rocks, buried below several hundred metres of transported cover (overburden) and cannot be located through conventional surface exploration methods such as soil sampling, geochemical assays and drilling. Minotaur's remote sensing and interpretative approach has proven very successful, time and time again.
The directors and management of Minotaur each have over 30 years of exploration, mining and mineral resource experience and are eminently qualified in their respective fields of expertise. Under their direction, Minotaur has earned a strong reputation for technical excellence and a high profile within the Australian resources sector. Minotaur's share register comprises 3500 shareholders.
Minotaur is actively exploring IOCG style targets in Australia, where geophysics have identified numerous sub-surface anomalies prospective for copper-gold mineralisation and other targets prospective for base metals such as zinc, lead, copper.
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