Korab wishes to advise that Korab shareholders will receive approximately 1.33 free shares in Uranium Australia Ltd for each Korab share they will hold on the record date.
As announced to ASX on 20 July 2009, Korab intends to seek shareholder approval for the spin-off and an in-specie distribution of the shares in Uranium Australia Ltd to Korab shareholders. The notice of the extraordinary general meeting (EGM) to approve the distribution is being finalised and will be despatched to Korab shareholders shortly.
Following ASX announcement of 20 July, Korab has canvassed opinions and voting intentions of major Korab shareholders who hold in aggregate over 68% of the issued capital of Korab. All of these Korab shareholders have confirmed that they will be likely to vote in favour of the in specie distribution at the upcoming general meeting.
Uranium Australia Ltd (UAU) is a uranium exploration company with world class uranium projects in the Northern Territory and Western Australia including the Batchelor project within the Rum Jungle Mineral Field near Darwin (RJMF). RJMF is the location of several high grade uranium deposits and mines and is the oldest uranium producing region in Australia . It is considered by experts to be the most prospective area for near surface high grade unconformity style uranium deposits. Uranium Australia 's Batchelor project extends for 20 km from the pit wall of the largest uranium mine within Rum Jungle Mineral Field (Rum Jungle Creek South) along the uranium bearing contact between Coomalie Dolostone and the Whites Formation which hosts all major uranium mineralisation within the Rum Jungle Mineral Field.
Korab holds a number of shares in UAU as a strategic stake. It has been proposed that these UAU shares will be distributed for free to Korab shareholders and that following this distribution UAU will undertake an IPO to list on ASX .
Korab will be sending out a notice of the meeting to obtain shareholder approval for this distribution shortly. All Korab shareholders holding shares on the record date will be entitled to participate on equal terms in the distribution and following the approval of the distribution will receive approximately 1.33 free shares in UAU for each Korab share they hold. The record date will be a date in the future and will be provided in the notice of the meeting.
UAU has received an in principle advice that should UAU seek admission to the ASX , ASX will be likely not to impose escrow provisions on the UAU shares distributed to Korab shareholders (other than the shares distributed to directors, promoters and related parties). The effect of this would be that the UAU shares distributed to Korab shareholders would be free to trade from commencement of trading of UAU on the ASX
Korab has been advised by UAU that it has received expressions of interest from brokers to sponsor/underwrite a $6 million IPO of UAU on ASX . The IPO of UAU is planned for October 2009. UAU has further advised Korab that the issue price for the IPO will be set at 20 cents per UAU share
ABOUT URANIUM AUSTRALIA LTD
Uranium Australia Ltd ( ASX reserved code: UAU) was founded in 2007 as a uranium mining and exploration company focusing on the Northern Territory and Western Australia . The Company has several projects with a potential to host large scale uranium mineralisation. Two of these projects are located in the Northern Territory and five projects are located in Western Australia .
The Company brings together an experienced management team with a strong record in the acquisition and development of resource projects.
What distinguishes Uranium Australia amongst many other exploration companies is its exploration strategy which is loosely termed the "Mineral Systems" approach. This philosophy centres on applying the understanding of the mineralising processes in a predicative capacity, rather than utilising a purely empirical approach. It is a method focussing on 'why' mineralisation occurs and 'where' it should occur under various geological conditions. This is in contrast to a traditional approach which largely targets only geochemical or geophysical anomalies.
The "Mineral Systems" approach has several benefits. It enables the Company to explore for several styles of uranium mineralisation as opposed to focusing on a single mineralisation model such as surficial calcrete-based or unconformity related uranium. In addition, the Company increases the chances for discovering an entirely new zone or a different style of mineralisation by utilising the available data in a more holistic fashion.
In the light of this approach, the highest priority projects are the Batchelor and Green Alligator Projects, in the Rum Jungle Mineral Field, Northern Territory. These have a combination of 'drill ready' targets adjacent to known historic unconformity-style uranium mineralisation at Rum Jungle Creek South uranium mine as well as more innovative targets, extending eastwards along a large zone of similarly prospective rocks. In this case a "Mineral Systems" approach is likely to be of substantial benefit in understanding the processes that have lead to mobilisation and deposition of uranium mineralisation within the target horizon. Furthermore, this exploration philosophy, may in fact be a necessary to enable optimal delineation and ranking of targets.
The area encompassing the Batchelor and Green Alligator projects is well serviced by basic infrastructure. A gas pipeline, a high voltage power line, a water pipeline, a major highway and a transcontinental railway line cross tenements contained in these projects. Furthermore, the tenements are located just 75km south from Darwin
In the Northern Territory , Uranium Australia will be focusing on the high value unconformity related uranium mineralisation which occurs on the carbon-rich interface between the Coomalie Dolostone and the Whites Formation (see the Figures 1 and 2 on next page). These deposits tend to occur at shallow depths and historically had grades of between 0.2% and 0.5% of uranium. The largest of the uranium deposits, Rum Jungle Creek South (Figure 2) which is located on the boundary of Uranium Australia 's ground occurred at a very shallow depth and was mined at a grade of 0.48% uranium for approximately 9,000,000 pounds of uranium.