Polaris rights issue raises $11.6m

There was strong support from existing shareholders for West Perth-based iron ore explorer Polaris Metals rights issue which raised $11.6 million from a rights issue.

The renounceable rights issue consisted of one new share for every five shares held at an issue price of 45 cents per share which closed oversubscribed last week.

Nearly 26 million shares were offered, raising $11.6m before costs.

The net proceeds will enable Polaris to complete pre-feasibility studies on the Yilgarn and Poondano iron ore projects and move into further development with a view to commencing production in 2010.

Holding statements for the new shares to be issued will be despatched by 12 June 2008 in accordance with the timetable in the prospectus.