PERTH, AUSTRALIA (Commodity Online):Shareholders of Korab Resources Ltd will receive approximately 1.33 free shares in Uranium Australia Ltd for each Korab share they will hold on the record date.

As announced to ASX on 20 July 2009, Korab intends to seek shareholder approval for the spin-off and an in-specie distribution of the shares in Uranium Australia Ltd to Korab shareholders. The notice of the extraordinary general meeting (EGM) to approve the distribution is being finalised and will be despatched to Korab shareholders shortly, according to a company press release.

Following ASX announcement of 20 July, Korab has canvassed opinions and voting intentions of major Korab shareholders who hold in aggregate over 68% of the issued capital of Korab. All of these Korab shareholders have confirmed that they will be likely to vote in favour of the in specie distribution at the upcoming general meeting.
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Uranium Australia Ltd (UAU) is a uranium exploration company with world class uranium projects in the Northern Territory and Western Australia including the Batchelor project within the Rum Jungle Mineral Field near Darwin (RJMF). RJMF is the location of several high grade uranium deposits and mines and is the oldest uranium producing region in Australia.

It is considered by experts to be the most prospective area for near surface high grade unconformity style uranium deposits. Uranium Australia’s Batchelor project extends for 20 km from the pit wall of the largest uranium mine within Rum Jungle Mineral Field (Rum Jungle Creek South) along the uranium bearing contact between Coomalie Dolostone and the Whites Formation which hosts all major uranium mineralisation within the Rum Jungle Mineral Field.

Korab holds a number of shares in UAU as a strategic stake. It has been proposed that these UAU shares will be distributed for free to Korab shareholders and that following this distribution UAU will undertake an IPO to list on ASX.

Korab will be sending out a notice of the meeting to obtain shareholder approval for this distribution shortly. All Korab shareholders holding shares on the record date will be entitled to participate on equal terms in the distribution and following the approval of the distribution will receive approximately 1.33 free shares in UAU for each Korab share they hold. The record date will be a date in the future and will be provided in the notice of the meeting, the company press release added.

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