Norwegian company Tinfos has turned its attention to Subiaco-based manganese explorer Spitfire Resources Ltd after losing out in the takeover race for Consolidated Minerals Ltd.
Norwegian company Tinfos has turned its attention to Subiaco-based manganese explorer Spitfire Resources Ltd after losing out in the takeover race for Consolidated Minerals Ltd.
Tinfos has agreed to buy 8.65 million Spitfire shares at 20 cents each, raising $1.73m, and giving the Norwegian group a 14 per cent stake in the company.
Tinfos will consider providing future technical assistance and funding to Spitfire to assist it in developing its South Woodie Woodie Manganese Project in the East Pilbara region.
Spitfire listed on the Australian Securities Exchange in December 2007 following a successful A$6 million IPO
AIM-listed Churchill Mining Plc is Spitfire's largest shareholder with a 41% interest (at IPO) which it acquired by selling its 80 per cent interest in the South Woodie Woodie Manganese Project.
The full announcement is pasted below:
Australian exploration company Spitfire Resources Limited (ASX Code: SPI - "Spitfire") is pleased to announce that it has secured the strategic support of the diversified Norwegian-based industrial, trading and metals & alloys group, Tinfos AS ("Tinfos"), as its new major shareholder via a 14% share placement.
Spitfire has agreed to make a placement of 8.65 million shares at 20 cents per share to Tinfos, raising $1.73 million. The proceeds of the share placement will further strengthen Spitfire's cash position to in excess of $7 million and will be used to accelerate the Company's manganese exploration activities in the East Pilbara region of Western Australia. In addition to acquiring the strategic interest in Spitfire, Tinfos has agreed:
To consider assisting Spitfire with future financing either by way of project mining finance or direct company capital injection to help Spitfire evaluate, explore and develop other manganese projects; and to consider providing technical and funding support to Spitfire to assist it in evaluating and developing its South Woodie Woodie Manganese Project in Western Australia.
Spitfire's Managing Director, Mr James Hamilton, said the Company was delighted to have secured the involvement of Tinfos, a leading supplier of metals and alloys and key player in the global manganese business, as a supportive major shareholder.
"We are pleased to welcome Tinfos as a new major shareholder and strategic partner to help us with our manganese ambitions," Mr Hamilton said.
"In addition to strengthening our cash position during a particularly difficult period in global equity markets, this share placement introduces a strong strategic partner to the Company to support our forthcoming manganese exploration activities," he continued.
"Tinfos also understands and is supportive of Spitfire's secondary corporate goal, which is to bring in other assets to the company - even if they are non-manganese related, Mr Hamilton said.
"Ultimately, this partnership significantly increases the range of development options we have available to us at South Woodie Woodie should our forthcoming exploration programs be successful.
"With the global manganese market continuing to strengthen on the back of strong demand from the steel industry and tightening high-grade ore supply, Spitfire is now ideally placed to capitalise given the support and knowledge of Tinfos," he added.
