Argonaut Resources (ASX:ARE) reports that the priority and general offer closing dates for the Orpheus Minerals initial public offering (IPO) has been extended from 25 November to 2 December 2022.
The delay in the offer, which opened on 25 October, will provide eligible Argonaut shareholders with a better opportunity to participate in the Argonaut priority offer component of the Orpheus IPO.
Orpheus is now expected to start trading on a normal settlement basis on the Australian Securities Exchange (ASX) on 16 December – a week later than previously announced.
Under the prospectus for the IPO, Orpheus is seeking to raise $6 million via the issue of 30 million shares at an offer price of $0.20 per share, which will give the company a market capitalisation of more than $11.14 million.
The lead manager for the float is Taylor Collison.
On 7 November, Managing Director Simon Mitchell told Mining.com.au on the sidelines of the International Mining and Resources Conference (IMARC) in Sydney that the listing comes amid an environment where uranium supply from stable jurisdictions – such as Australia – is currently in structural decline.
The MD told this news service that projected mid to long-term global demand for uranium is forecast to increase significantly.
It is anticipated to come mostly from regions such as the US, Europe, or North Asia, where uranium is used in the production of zero-emission power, which means that it does not directly produce carbon dioxide during electricity production, and where nuclear generation is considered a viable option to meet increasing energy needs in a world where many governments are seeking to shift from carbon intensive energy sources.
Orpheus is currently an Australian unlisted public company, incorporated on 21 August 2020 by its parent company Argonaut Resources. Following a strategic review of its assets, Argonaut decided to demerge its uranium exploration projects via an IPO, which is considered to be a partial, non-standard spin-out.
Orpheus’s objective is to explore for and discover greenfield uranium deposits of economic grade and scale in South Australia and the Northern Territory.
Currently, South Australia and the Northern Territory are the only 2 states or territories in Australia that allow uranium mining.
Write to Adam Orlando at Mining.com.au
Images: Argonaut Resources Ltd & iStock
