Spitfire in $5m Admiral buy

Perth-based Spitfire Materials is seeking to grow its gold exploration portfolio through the acquisition of a private company led by Pilbara Minerals directors Neil Biddle and John Young, in a scrip deal worth $4.7 million.

Spitfire will issue 59.5 million shares to acquire Admiral Gold, which has joint venture agreements over two gold exploration projects as well as the Mulwarrie project in the Goldfields, and the Alice River gold project in Queensland.

At Spitfire’s opening share price of 8 cents each, the deal would be worth $4.7 million.

As part of the acquisition, Mr Biddle and Mr Young, who were previously involved in guiding Pilbara Minerals during its path to becoming a lithium producer, will join the Spitfire board, replacing Ian Huitson and Dominic Traynor.

“We are delighted with the proposed acquisition of Admiral which will see the addition of two promising Australian gold exploration projects to the company’s portfolio,” Spitfire director Russell Hardwick said.

“As part of the transaction, we also look forward to welcoming Neil Biddle and John Young to the Spitfire team.

“Neil and John are highly experienced and capable geologists and mining executives with a strong track record spanning many years. They will bolster both our profile and our exploration capabilities.”

Spitfire, which changed its name last year from Spitfire Resources, was unchanged at 8 cents each at the close of trade.