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Uranium explorer rushed by backers

ANTHONY KEANE

February 19, 2007 01:15am
Article from: The Advertiser

URANIUM fever remains high, prompting a South Australian exploration company to close its $7 million initial public offer just over a week after opening it.
Lincoln Minerals said yesterday it planned to list on the stock exchange next month after closing its IPO early and oversubscribed on Friday.

The offer opened on February 7 and had been scheduled to close on February 28.

Managing director John Parker said yesterday 50 per cent of the funds would go on uranium exploration. "That's our primary target," he said.

"We have some very good uranium prospects at the centre of Eyre Peninsula."

Lincoln's portfolio also covers lead, zinc, copper, nickel, silver, gold and iron ore projects.

"We have half a dozen hematite iron ore targets near Port Lincoln that we are planning to drill in the first year," Dr Parker said.

The company also had a project "right next door" to Wilcherry Hill, home of a high-grade iron ore resource on Eyre Peninsula that sent shares in Trafford Resources surging this month.

Dr Parker said Lincoln's IPO success reflected the high level of interest in uranium and other resources.

The interest had "been coming to a large extent from Asian investors" and Lincoln had "several major Australian-based Asian investors".

Lincoln is already exploring, with an aeromagnetic survey beginning a week ago. Drilling is expected to start mid-year.

Dr Parker was formerly the South Australian Geological Survey's chief geologist and mapped much of Eyre Peninsula before forming a mineral exploration consultancy.

Lincoln's chairman is former Henry Walker Eltin chief executive Richard Ryan.