Western Australian uranium focussed explorer, Pegasus Metals Limited, is set to make its debut on the ASX this month under the Code: PUN after closing its IPO early and substantially oversubscribed.

Pegasus lodged a prospectus offering 17.5 million shares at 20 cents to raise $3.5 million. On listing Pegasus will have 32.25 million shares with a nominal capitalisation of $6.5 million at the public issue price.

The Pegasus team is headed by chairman, Craig Munro and executive director, Peter Andrews and director and company secretary, Graham Anderson, together with exploration consultant, Jon Crowe. Lead manager, Patersons Securities Limited, filled the offer within 10 days of its opening.

Peter Andrews says the company was pleased with the overwhelmingly positive response from investors: "We believe it reflects a combination of our uranium, gold and base metals assets and the track record and expertise of our team."

"We will immediately start our exploration programs with particular focus on our three uranium projects in the Ashburton-Gascoyne region of Western Australia," he says.

"At the same time we are assessing opportunities to add to our existing asset base".

About Pegusus

Pegasus is focused on becoming a successful Australian exploration company and, to that end, has assembled a portfolio of six promising 100% owned projects with exploration targets ready for immediate follow-up once listing is completed.

The company was incorporated in July 2005 to apply for three uranium exploration project areas in the Ashburton-Gascoyne region of Western Australia. In 2006, three additional Pilbara region exploration projects were acquired and these are variously prospective for gold, base metals and PGMs.

Pegasus' three uranium projects, Hooley, Horse Well and Gifford Creek, cover 153 square kilometres of ground which the company will commence further evaluating for their uranium potential immediately post-listing. Pegasus has already initiated new close-spaced airborne radiometric and magnetic surveys over these areas.

Exploration by previous companies on prospects known as Hooley Camp, Glenflorrie, Golan and Dulcie - all contained within Pegasus' Hooley Project area - included shallow drilling concentrated on gossanous quartz-filled zones occurring in tension fracture within granitic rocks, resulting in one zone at Hooley Camp being traced up to 1.2km on surface.

Surface sampling in the Golan area returned enriched values of up to 10.7% U3O8, with up to 5300ppm assayed from a core sample below 78.5 metres in one drill hole. North of Golan, up to 5.63% U3O8 was recorded from surface sampling, while a percussion drill hole produced an intersection of 3 metres @ 1,265ppm U3O8 from 40 metres. At Glenflorrie to the south, trench samples assayed up to 0.33% U3O8.

At the Horse Well Project, there are several known uranium occurrences, with a best drill intercept of 7 metres @ 700ppm U3O8 being recorded from previous 1970s exploration, while at Gifford Creek uranium mineralisation has been recorded at two locations. The Gifford Creek project also contains a number of untested radiometric anomalies.

Pegasus' Nullagine North gold and base metals projects, include the Yandicoogina Project which contains most of the old Yandicoogina gold mining centre, including 18 kilometres strike of the host Duffer Formation where it rims the Mt Edgar Granitoid Complex. Numerous pits and old workings occur on gold mineralized quartz veins with gold production of 3340 tonnes mined at 60.76 grams/tonne historically recorded from the Yandicoogina gold mining centre. Potential also exists for base metals as evidenced by the excised Lennons Find VMS resource (zinc, copper, lead and silver) in the northeast of the project area.