Polaris Metals NL spin-off Southern Cross Goldfields Ltd is looking to raise up to $10 million to progress its gold and nickel exploration aims, ahead of listing on the Australian Securities Exchange.
Southern Cross is the result of Polaris demerging its gold and nickel assets together with acquiring other gold and nickel assets in the Yilgarn Craton region in Western Australia's Mid-West.
The company is offering 50 million shares at 20 cents each to raise $10 million and has issued 22 million vendor shares and 15 million vendor options to Polaris in consideration for Polaris gold and nickel assets.
Western Areas NL has already requested a cornerstone position in the IPO, agreeing to subscribe for 5 million of the shares under the public offer.
In total, Southern Cross Goldfields has secured the rights to all minerals (excluding iron ore) within a number of mining and exploration tenements covering around 3,400 square kilometres.
The company has a long pipeline of targets for both gold and nickel and an identified exploration program
for 2008 and 2009 with drill ready targets.
Drilling will commence in the Red Boomerang area in March 2008.
Southern Cross' primary objective is to discover large high grade gold and/or nickel deposits that can deliver profitable production with minimum risk.
Previous exploration has identified approximately 106,000 ounces of gold in JORC compliant resources.
Southern Cross expects to close its public offer on February 15 and to list on the ASX on March 3, 2008.
The company is chaired by Samantha Tough, and has Antony Truelove as managing director, and Vernon Strange and Ian Buchhorn as non-executive directors.
Stantons International is acting as auditor for the offer and Blakiston and Crabb as solicitors.
