2006 News Releases
Mega Goes Unconditional on Redport Limited
Toronto, Ontario, Canada, October 6, 2006 – Mega Uranium Ltd. (MGA-TSX) announces that Mega Redport Pty Ltd., Mega’s wholly owned subsidiary (“Mega”), has declared its offer for all of the shares and options of the Australian Stock Exchange-listed Redport Limited (“Redport”) unconditional and that Mega will commence taking up the shares and options of Redport which have been tendered to the offer thus far.
On the close of the offer, in combination with its associates, Mega will own, not less than 60% of the shares of Redport and hold not less than a 64% interest on a partially diluted basis (assuming the exercise of its Report options), given the acceptances received to date.
Mega also announced that it extended the time period to accept the takeover offer until 5:00 pm Brisbane time on October 31, 2006.
Mega also announces that, if it is able to get to 90% of the voting control of Redport, it will move to compulsorily acquire the remainder of Redport’s ordinary shares and options that remain outstanding after the close of the takeover offer period.
As explained in Mega’s press release dated July 7, 2006, through this acquisition of Redport, Mega will obtain Redport’s principal asset, the Lake Maitland uranium project in Western Australia, which contains a National Instrument 43-101 (“NI 43-101”) compliant inferred mineral resource of 23.7 million pounds U3O8. Other assets include interests in uranium exploration properties in Western Australia and South Australia, a royalty interest in Paladin Resources Ltd.’s Langer Heinrich project in Namibia, and cash reserves of approximately $A9 million ($C7.4 million). Through this transaction, Mega will also acquire the services of Redport’s management and consultants, who have considerable experience and expertise in uranium exploration, feasibility studies and mine development.
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com
. Mega Uranium’s Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630