Prairie Downs Metals Ltd intends to joint venture the Coppermine...

Prairie Downs Metals Ltd intends to joint venture the Coppermine Bore Project with
Western Uranium Ltd. It is planned to seek ASX listing of Western Uranium in conjunction
with a $2.5 million capital raising. Prairie Downs will not be a shareholder of Western
Uranium upon listing, with the full $2.5 million capital raising representing the
capitalisation of Western Uranium.
Western Uranium will have the right to earn a 50% interest in the Coppermine Bore
Project through expenditure of $1 million, and a further 25% through a further $2 million
expenditure. In that event, Prairie Downs’ 25% interest will be free carried through to a
decision to mine.
The Prairie Downs Zinc Project, with continuing good drilling results, is rapidly gathering
momentum and is now the absolute focus of the company. Accordingly, it is unable to
commit to Coppermine Bore the appropriate level of resources the project requires. Work
to date at Coppermine Bore has been highly encouraging and justifies immediate drilling.
A project summary is provided below.
The indicative timetable envisages listing of Western Uranium early in the next quarter
with the first RC drill program to commence shortly thereafter.
Patersons Securities Limited has been appointed to assist with the listing of Western
Uranium Ltd and preparation of a prospectus for the capital raising is underway. The
raising will take the form of a priority issue to shareholders in conjunction with a public
offer.
A total of $1.5 million will be set aside for Australian and New Zealand Prairie Downs
shareholders on the relevant record date, allocable at the directors’ discretion. Details on
the timetable for the issue and the priority arrangements for Prairie Downs shareholders
to subscribe for shares in Western Uranium will be announced once they are finalised.
For further information contact:
Mark Hansen
Managing Director
+618 9225 5755
[email protected]