Uranium Australia, a subsidiary of Korab Resources, is seeking to raise up to Aus$30 million through a float on the Australian Stock Exchange.

Uranium Australia will use the extra capital to finance further uranium exploration and development in the Northern Territory and Western Australia.

Korab Resources executive chairman Andrej Karpinski says there has been a lot of interest in the offer and he believes it may be oversubscribed.

The record date for the offer is June 30 with Korab shareholders entitled to a priority allocation of one Uranium Australia share for every three Korab Resources shares held.

"The raising of $20 million to $30 million is a big chunk of money for a junior," Andrej Karpinski says, "but with an annual exploration budget of $5 million we want to make sure Uranium Australia will have enough funds for three or four years of operations.

"We haven't determined a price but we will do so when we are ready to lodge a prospectus. The uranium market is very active and prices are fluctuating which makes it difficult to set a price."

Korab will transfer 90% of the rights to any uranium within all its projects to Uranium Australia and that will give it exploration exposure to about 10 uranium projects in Western Australia and the Northern Territory, covering about 20,000sqkm.

Andrej Karpinski says Korab took a promotional road show about the float overseas and this created interest from possible investors in North America, Europe and Asia. "We also held talks with companies in areas where nuclear power is being used. We spoke to utilities and users.

"Existing Korab shareholders will get priority in the IPO. Every shareholder will be looked after, no matter how many shares they have. There will be 15 million Uranium Australia shares reserved for Korab shareholders and any shares from this pool that are not taken up will be offered initially to Korab shareholders.

"Korab will retain 10% interest in all its uranium mineralization projects and will own the tenements making up these projects. We will also have the rights to all minerals other than uranium within those project areas and will have pre-emptive rights to provide funding for development of any uranium deposits found by Uranium Australia.

"Korab also has its own JORC-compliant resource of 300,000 ounces of gold with the potential for expansion. There are also several nickel, lead and zinc targets and a number of copper anomalies within its projects.

"It will also have 90 million shares in Uranium Australia," Andrej Karpinski says.

Korab is also looking at several advanced uranium projects in eastern Europe along with a number of copper and gold projects that could be developed within a very short time frame - "months, not years," Andrej Karpinski says. "Discussions are continuing and we have a geologist working in eastern Europe."