22 mill converting note issue

Just announced:

A$22 MILLION CONVERTING NOTE ISSUE
The directors of Universal Resources Limited (“Universal”) are pleased to announce the placement of an issue of Converting Notes (Notes) to raise A$22 million before costs. The three year Notes carry an interest coupon of 5% pa. The placement is subject to shareholder approval which will be sought at a general meeting of the company to be held in late June 2006.
The note has a 90 day non-conversion period from the date of issuance and thereafter, at any time prior to maturity, can be converted into ordinary shares in Universal at a conversion price of A$0.18 per share, representing a premium of approximately 20% over the 30 day VWAP prior to the company requesting a Trading Halt on 10 May. At maturity the note will automatically convert into ordinary share capital at a conversion price of A$0.18 per share or, if the share price is less than A$0.18, a price equal to the VWAP for Universal shares traded on the ASX over the five trading days prior to the maturity date.
BBY Limited was Lead Manager of the placement which was taken by institutional investors in the United States, the UK, Europe and Australia. BBY was supported by its strategic partner, US investment bank, Jefferies & Co.
The funds raised from the placement will be used to complete the bankable feasibility study for the Roseby Copper Project, due for completion in July 2006, as well as pre-engineering design work, project permitting, additional exploration, the final A$2.28 million vendor payment due on completion of the feasibility study and for working capital.
ASX Announcement 15 May 2006 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
2
The capital raising will significantly strengthen offshore investor support for the company and will place Universal in a favourable financial position as it progresses the feasibility study of the Roseby Copper Project in Queensland.
Global interest in the Notes reflected a growing recognition of the potential of the company’s Roseby Copper Project and the high quality of its portfolio of exploration projects in the Mt Isa mineral province and the Lachlan Fold Belt of southern NSW.
Yours faithfully
P. A. J. Ingram BSc, FAusIMM, MGSA, FAICD
Chairman and Managing Director
MEDIA RELEASE
UNIVERSAL ANNOUNCES A$22 MILLION CAPITAL RAISING
15 May 2006
Universal Resources Limited (ASX:URL) today announced a placement of Converting Notes to raise A$22 million. The three year notes carry an interest coupon of 5% pa. The placement is subject to shareholder approval which will be sought at a general meeting of the company to be held in late June 2006.
Universal’s Executive Chairman Mr Peter Ingram said the capital raising would significantly strengthen offshore investor support for the company and will place Universal in a favourable financial position.
BBY Limited was Lead Manager of the placement which was taken by institutional investors in the United States, the UK, Europe and Australia. BBY was supported by its strategic partner, US investment bank, Jefferies & Co.
The note has a 90 day non-conversion period from the date of issuance and thereafter, at any time prior to maturity, can be converted into ordinary shares in Universal at a conversion price A$0.18 per share representing a premium of approximately 20% over the 30 day VWAP prior to the company requesting a Trading Halt on 10 May . At maturity the note will automatically convert into ordinary share capital at a conversion price of A$0.18 per share or, if the share price is less than A$0.18, a price equal to the VWAP for Universal shares traded on the ASX over the five trading days prior to the maturity date.
Newly appointed Managing Director Mr Michael Hulmes commented that the global interest in the Converting Notes reflected a growing recognition of the potential of the company’s Roseby Copper Project and the high quality of its portfolio of exploration projects in the Mt Isa mineral province and the Lachlan Fold Belt of southern NSW. “Our base metals, gold and uranium prospects and our plans for growing the company have been endorsed by our new investors,” said Mr Hulmes.
The funds raised from the placement will be used to complete the bankable feasibility study for the Roseby Copper Project, due for completion in July 2006, as well as pre-engineering design work, project permitting, additional exploration, the final A$2.28 million vendor payment due on completion of the feasibility study and for working capital.
“The company has experienced senior management and sound organisational structures in place to manage the expected growth,” said Mr Hulmes.