Polaris Metals NL spin-off Southern Cross Goldfields Ltd has closed its initial public offer after raising $8 million, ahead of listing on the Australian Securities Exchange on March 20.
Southern Cross, which had hoped to raise a total of $10 million with 50 million shares at 20 cents on offer, was established in 2007 to explore and develop of nickel and gold exploration targets in the Yilgarn region of Western Australia.
Upon listing, the company will immediately commence an aggressive exploration program of its drill ready targets across 3,400km² of mineral tenements.
Polaris managing dircetor Jonathan Lea said the successful spin-out was achieved against difficult market conditions, indicating the strength of support for Southern Cross Goldfields' portfolio of assets, including an identified resource of 106,000oz of gold.
As previously announced, Western Areas NL has requested a cornerstone position in the IPO, agreeing to subscribe for 5 million shares.
Polaris shareholders have direct exposure to Southern Cross Goldfields at no cost through an in-specie distribution of 22 million shares. Polaris has also made an investment of $2.4 million in the new company
Mr Lea said the spin-out was the first of a number of key milestones identified by Polaris as part of its transition to iron ore producer by 2009 and it would now be able to focus on the development of its key Yilgarn Iron Ore and Poondano Projects.
Polaris' key priorities for the first half of 2008, include the completion of pre-feasibility studies and securing access to nearby infrastructure for both projects.
Southern Cross is chaired by Samantha Tough, and has Antony Truelove as managing director, and Vernon Strange and Ian Buchhorn as non-executive directors.
Stantons International acted as auditor to the offer and Blakiston and Crabb as solicitors.
