POL 0.00% 71.0¢ polaris metals nl

polaris to support southern cross goldfields

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    See also full announcement of late yesterday.

    Polaris to Support Southern Cross Goldfields Limited

    We refer to the previously announced spin-off of Polaris' non iron-ore assets through an initial public offer and listing of Southern Cross Goldfields Limited (SXG) on the Australian Securities Exchange. The spin-off will allow Polaris to focus on developing iron ore mines on its various projects in the Pilbara and Central Yilgarn of Western Australia. SXG will hold the non-iron rights over approximately 3,400 km2 of the prospective Yilgarn Craton region of Western Australia.

    Polaris is committed to the long term success of SXG and, in light of recent market volatility, has agreed to subscribe for up to 13,000,000 shares under SXG's initial public offer so that SXG can complete its listing. Consistent with this, Polaris has executed deed polls voluntarily escrowing SXG shares it subscribes for a period of 12 months (or earlier as agreed with SXG) and, until the previously announced in-specie distribution (Distribution) is completed, precluding it from voting those shares other than in limited circumstances.

    In deciding to invest in SXG, Polaris has had regard to the following:

    Polaris is a strong supporter of SXG and believes that its projects have an excellent potential.
    Polaris' involvement will ensure that SXG's initial public offer is successful and will ensure that SXG can proceed with exploration on its "pipeline" of gold and nickel targets, as set out in SXG's prospectus , and Polaris can focus on its long term strategy of developing its iron ore assets.
    Polaris is a significant cornerstone investor whose participation will strengthen SXG's shareholder base.
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