Horseshoe Metals completes $7m IPO

Horseshoe Metals is expected to list on the Australian Securities Exchange (ASX) tomorrow after completing a $7 million initial public offering (IPO).

On listing, Horseshoe Metals will have 56 million shares on issue and 29.97 million options valuing the company at $11.22 million.

Grange Resources will be a significant shareholder in Horseshoe Metals holding 3.9 million shares.

Horseshoe Metals has two key assets, the Horseshoe Lights and Kumarina projects in the Peak Hill mineral field.

Horseshoe Lights includes the close Horseshoe Light mine which was closed in 1994.

The mine has an existing JORC compliant Inferred Mineral Resource of 4.9 million tonnes at 1.0 per cent copper.

Horseshoe Metals managing director Neil Marston said the success of the listing would enable the company to focus significant resources to two highly prospective projects in an emerging Western Australian copper-gold province, with both having significant historical copper-gold mineralisation and proven resources.

See full company statement:

Western Australia focused copper and gold company Horseshoe Metals Limited (ASX:HOR) ("Horseshoe" or "the Company") will make its debut on the Australian Stock Exchange (ASX) tomorrow (Thursday 29 July) following completion of a successful Initial Public Offer (IPO) in June 2010 which raised AU$7million.

The capital raising was managed by leading Western Australian corporate advisory firm Azure Capital Limited, with fellow Western Australian stockbroking firm CPS Securities Limited also assisting Azure Capital in its fundraising endeavours.

On listing, Horseshoe Metals will have 56 million shares on issue and 29.97 million options, capitalising the Company at AU$11.22 million at the issue price.

ASX listed resources company Grange Resources Limited (ASX: GRR) ("Grange") will be a major shareholder of Horseshoe, holding 3.9 million shares on listing (~ 7.2 per cent of the issued capital of the company).

The key assets of the Company include 100 per cent rights to the Horseshoe Lights and Kumarina projects, which cover more than 297 square kilometres in the resource rich Peak Hill Mineral Field of Western Australia.

The Horseshoe Lights Project includes the closed Horseshoe Lights mine, which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper. The mine has an existing JORC compliant Inferred Mineral Resource of 4.9 million tonnes at 1.0 per cent copper (containing 48,000 tonnes of copper metal).

Copper mineralisation was discovered at Kumarina in 1913. Although approximately 580 tonnes of copper metal is reported to have been mined from the Kumarina Project, the current tenement area has been subjected to only limited modern exploration. Consequently, the project is considered to be at a very early stage of assessment with good potential for the discovery of additional copper mineralisation.

Horseshoe Metals Managing Director Neil Marston said the success of the listing would enable the company to focus significant resources to two highly prospective projects in an emerging Western Australian copper/gold province, with both having significant historical copper/gold mineralisation and proven resources.