Spitfire in $5m raising

Junior explorer Spitfire Materials has tapped investors for $5.3 million via a strongly supported share placement as the company ramps-up exploration work at its Western Australian gold project.

North Fremantle-based Spitfire will issue 53 million shares at 10 cents each, with strong demand from sophisticated and professional investors.

The company recently merged with Aphrodite Gold and subsequently owns the Aphrodite gold project near Kalgoorlie. Managing director John Young said the proceeds from the raising would be used for development of this project.

“We are delighted with the outstanding level of support we have received both from existing shareholders and new investors as part of this capital raising, which I believe reflects the quality of the gold assets we now own and the significant opportunity in front of us to rapidly grow our resource inventory and build a substantial new Australian gold company against the backdrop of significant investor interest in the Australian gold sector,” he said.

“We intend to bring a combination of creative new thinking, new technology and a real focus to the re-evaluation of the Aphrodite Project, which is the centrepiece of our strategy to quickly establish the critical mass to become a significant new player in the Australian gold sector.”

The company said it would undertake a 5,000-metre diamond drilling program and commence key pre-development studies at Aphrodite following the placement.

Spitfire is also expected to complete drilling at its Mulwarrie gold project, which is located 150 kilometres north-west of Kalgoorlie, with the funds.