Renewed investor hunger for uranium stocks has resulted in an $18 million share offer for junior explorer Toro Energy to close early and heavily oversubscribed. The company closed its initial public offer four days early after receiving applications for more than $52.5 million worth of stock, making the offer more than 190 per cent oversubscribed.
Toro is being formed by the spin out of the uranium assets of Oxiana Ltd and Minotaur Exploration, with a priority offer being made to the shareholders of the two parent companies alongside a public offer.
Toro today warned that the huge amount of interest in the offer meant many applicants could see their share allocations scaled back or declined.
A spokeswoman for Oxiana said with preference being given to Oxiana and Minotaur shareholders, there would probably be few shares allocated to applicants in the public offer.
Toro has 26,000 square kilometres of exploration tenements in South Australia's Gawler and Curnamona Cratons and has been granted consent by the state resources minister Paul Holloway to look for and mine uranium.
The final hurdle for the formation of the new company will be gaining the approval of Minotaur shareholders, with a meeting set for March 14......
OXR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
