South Australia's newest uranium company, Toro Energy Limited (ASX: TOE), which listed on the Australian Stock Exchange today, expects to drill its first exploration holes as early as the coming quarter.
Toro also announced today that it was keen to enhance its position as one of an emerging new breed of uranium explorers through acquisitions of other companies or projects.
The Company joined the ASX after attracting substantial subscriptions for the $18m worth of stock on offer as a pure uranium explorer. Oversubscriptions were not permitted to be accepted under the terms of Toro Energy's prospectus.
Minotaur Exploration and Oxiana Limited's uranium assets in SA were vended into Toro which now holds a highly prospective package of tenements of more than 26,000 km2 of acreage in South Australia's Gawler and Curnamona Cratons. Toro's acreage contains well documented uranium occurrences.
"Toro is in a position to commence drilling priority targets immediately and its intention is to emerge over time as the pre-eminent uranium-only explorer in Australia, as well as being highly acquisitive of assets or projects which can add to shareholder value," Toro Chairman, Dr Ian Gould said.
"While work will be conducted in 2006 on most areas within Toro's asset portfolio, Yaninee and Kingoonya will be the initial targets for exploration expenditure," Dr Gould said.
"We have drill ready targets, are advanced in securing forward drill rig commitments and expect to be on the ground drilling at various locations in less than a month or two after listing," he said.
"As a point of differentiation, we are a pure uranium-only focus, and cannot be distracted in our objective by other base or precious metals opportunities."
"Due to initial work by Minotaur and Oxiana, both Cratons now contain well documented uranium occurrences in what is one of the world's most prospective uranium regions. This sets the scene for a solid exploration start."
Toro Energy's securities will trade under the ticker-code TOE.
Toro's Managing Director, Mr Greg Hall, said today there had been little recent uranium focussed exploration in Australia since the late 1970s to early 1980s so there was considerable future upside from the application of more modern exploration tools.
"Our timing is right, there was solid market support for Toro's IPO and listing, and we join the ASX amid a period of increasing global acceptance of - and need for - nuclear energy," Mr Hall said.
"This environment generates potential for commercial discovery to service burgeoning demand in a high uranium price period enhanced by pressure at the political level to consider nuclear energy to assist to reduce greenhouse emissions.
"Our uranium management-exploration experience is unrivalled for such a new listing and we will be assembling a team of experienced uranium and mining industry professionals, backed by the support and access to the skills base of our major shareholders, Oxiana and Minotaur."
Mr Hall said many new juniors had entered the uranium game in the past three years and this would trigger some near-term consolidation in the sector.
"Toro will be a keen buyer of quality uranium projects to which it can rapidly value add," he said.
About TORO ENERGY LIMITED: Uranium and Energy
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631