Prime Minerals lists at 190% premium
Perth-based uranium resource company, Prime Minerals listed on the ASX yesterday, closing at a 190 percent premium to its issue price, after its Initial Public Offer (IPO) was oversubscribed and raised $2.2m.
Prime shares traded as high as 59 cents, a 195 percent premium to the issue price of 20 cents, before closing at 58 cents, with more than 1.3 million shares traded. Prime issued 11 million shares as part of its IPO, valuing the company at $6.5m on listing. In April 2007, the company will also issue all shareholders one loyalty option for one cent for every two shares held. These 20-cent options at today's trading would have a nominal value of 48 cents and will be immediately listed after issue, expiring in October 2009. Prime will complete a low-level airborne radiometric survey and an extensive drilling program over its Lake Mason Uranium Tenement, with a view to substantially increasing its uranium deposit. LakeMason is located 40km south of BHP Billiton’s 52,000t Yeelirrie deposit, which is the world’s largest calcrete uranium deposit. Prime Chairman, Bruce Hawley said the company was pleased with its outstanding debut. “Funds raised during the IPO will be used to complete the radiometric survey of the LakeMason uranium deposit and our drilling campaign,” Mr Hawley said. “We are glad the listing process is now complete and we will now turn our attention to exploration at our LakeMason project. This is an exciting time for Prime and we anticipate an aggressive drilling campaign starting shortly after next month's radiometric survey is completed,” he said. “We also plan to carry out target generation over our iron ore, vanadium and gold tenements, followed by drilling of the priority targets.” According to Mr Hawley, Prime will also be targeting the acquisition of complimentary projects, with a view to increasing shareholders wealth.