POL 0.00% 71.0¢ polaris metals nl

southern cross goldfields ipo raises 8mill

  1. 4,724 Posts.
    5 March 2008


    The Directors of Polaris Metals (ASX: POL) are pleased to announce that the Southern Cross Goldfields Limited (proposed ASX code: SXG) Initial Public Offering has closed after raising $8 million.

    The successful spin-out was achieved against difficult market conditions, indicating the strength of support for Southern Cross Goldfields’ portfolio of quality assets, including an identified resource of 106,000oz of gold.
    Managing Director Jonathan Lea said the successful IPO was significant for Polaris shareholders in that:

    •Polaris will now be able to focus on the development of its key Yilgarn Iron Ore and Poondano Projects to deliver significant value through production;

    •Polaris shareholders have direct exposure to Southern Cross Goldfields at no cost through an in-specie distribution of 22 million shares;

    •Polaris has made an investment of $2.4 million in the new company, which it believes will deliver good returns in the future; and

    •The spin-out is the first of a number of key milestones identified by Polaris as part of its transition to iron ore producer by 2009.

    Mr Lea said Polaris would now focus on its key priorities for the first half of 2008, including the completion of pre-feasibility studies for its Poondano and Yilgarn Iron Ore Projects and securing access to nearby infrastructure for both projects.

    Southern Cross Goldfields was established in 2007 as a dedicated company for the exploration and development of quality nickel and gold exploration targets in the Yilgarn region of Western Australia.

    Upon listing, the company will immediately commence an aggressive exploration program of its drill ready targets across 3,400km² of mineral tenements.
    Holding statements and notifications will be sent out to applicants in the next week.

    About Polaris Metals NL
    Polaris Metals NL (ASX: POL) is an aspiring Australian iron ore miner with a portfolio of quality assets on track for production, targeting 5-10 million tonnes of direct shipping iron ore per annum.

    The Company holds tenements spanning over 4,700km2 in highly prospective iron ore provinces in Western Australia. These include the flagship Yilgarn Iron Ore and Poondano Projects near Koolyanobbing and Port Hedland respectively.

    Following an aggressive exploration program and the successful spin out of its gold and nickel assets to maximise focus on its promising iron ore projects, Polaris is now poised to make the transition from strategic explorer to significant iron ore producer by 2009.

    About Southern Cross Goldfields Limited Southern Cross

    Goldfields is a Western Australia based, gold and nickel explorer with prospective gold and nickel assets in the Yilgarn region of Western Australia. Southern Cross is the result of Polaris Metals NL demerging its gold and nickel assets, as well as acquiring additional gold and nickel assets in the Yilgarn.

    Southern Cross Goldfields has secured the rights to all minerals (excluding iron ore) within a number of mining and exploration tenements, covering around 3,400km². The company has a pipeline of targets for both gold and nickel and an identified exploration program for 2008 and 2009 with drill ready targets.

    For and on behalf of Polaris Metals NL
    Jonathan Lea
    Managing Director
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