West Perth based-Polaris Metals Ltd aims to raise almost $2.6 million through a placement with Hartleys Ltd, to fund drilling, exploration and pre-feasibility studies at the company's mineral deposits.
Polaris expects the placement, of 16 million ordinary shares at 16c each, to be approved at a shareholder meeting on September 15, along with approval of the acquisition of Kalgoorlie-based Heron Resources Ltd's iron ore assets.
Polaris will conduct drilling and pre-feasibility studies of the Poondano channel iron deposit located 30km southeast of Port Hedland; drill testing direct shipping iron ore targets at Goldsworth, and drilling and other exploration on the Company's gold and nickel projects at Bullfinch North, Golden Valley, Jackson, Yarby and Clampton North as well as general working capital.
The Heron projects cover more than 4,000 sqkm of iron ore exploration tenements and licences, consisting of a number of targets at varying degrees of development.
As consideration for the tenements, Heron will receive $5.5 million worth of Polaris shares at no less than $0.185 per share being 29,729,730 shares, and 15,000,000 5 year performance options exercisable at $0.30, all subject to approval by Polaris shareholders. Heron managing director Ian Buchhorn will also be invited to join the Polaris board as a non-executive director.
