Carpentaria Exploration closes up 24% on first day's trade

West Perth-based Carpentaria Exploration Ltd, a spin-off of Giralia Resources NL, closed up 24 per cent in its debut on the Australian Securities Exchange, after raising $7.5 million in its initial public offer.

The company, which reached a high of 35 cents today, closed at 31 cents, up from its offer price of 25 cents.

Carpentaria has inherited the Queensland and New South Wales copper-gold-uranium and nickel assets of its parent company, which it aims to explore and develop with funds raised through the float.

Carpentaria will issue 30 million shares at 25 cents each to raise the money, while Giralia will retain around a 10 per cent interest in the company following listing.

Carpentaria will also offer a pool of up to 15 million shares in a priority offer to Giralia shareholders with at least 10,000 shares in the company, an offer eligible Giralia directors have already indicated they plan to pick up.

Giralia will hold 34 million shares in Carpentaria upon quotation on ASX. At a shareholder meeting to be held on or about November 2007, Giralia will seek shareholder approval to distribute approximately 27.2 million of the 34 million Carpentaria shares to its shareholders on a pro-rata basis.

The minimum subscription to be raised is $3.5 million and no oversubscriptions will be accepted.

Carpentaria is chaired by former Inco Ltd Vice President-Exploration Nick Sheard in an executive capacity. He is joined on the board by Stan Macdonald and Bob Hair as non-executive directors, and Bruce Acutt and Chris Powell as joint company secretary.

The Queensland offices of PKF will serve as auditor to the company, while Perth's Mack & Co will act as Investigating Accountant and Pullinger Readhead Lucas as solicitor to the offer.