epsilon off to a flyer

AUSTRALIA'S latest listed uranium vehicle has debuted at a 50% premium to its issue price, continuing the rich vein of form of uranium-focused IPOs.

Epsilon Energy – a spin-off company from nickel explorer Heron Resources – opened this morning at 30c, moved to a high of 31c, before creeping back to 30c at the time of writing. Epsilon raised $4 million through the issue of 20 million shares at 20c per share, with its initial public offer closing heavily oversubscribed ten days in.

Epsilon will acquire 100% rights to uranium mineralisation across seven key projects across four states in Australia, with its flagship asset the Balladonia project in Western Australia which was previously explored by Rio Tinto.

Balladonia consists of 40 tenements covering 6563 square kilometres.

However the more advanced of the projects is Mt Phillips in WA.

Epsilon said recent grab samples from the project returned values ranging from 0.024% to 0.708% uranium, with some exceeding 1.18%.

The majority of Epsilon's projects are in WA with one each in the Northern Territory, Queensland and South Australia.

In the board room, Bruce Larson takes the seat of chairman, Matthew Gauci will serve as managing director, Michael Dentith and Matthew Longworth join up as non-executive directors and Kent Hunter will act as company secretary.

LinQ acted as the lead broker to the offer.

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