demand for sfr shares 'extreme'

Sandfire Resources bookbuild running hot
Michael Bennet
From: The Australian February 25, 2010

DEMAND is running hot on the institutional bookbuild of Sandfire Resources' $67.5 million capital raising.
Goldman Sachs JBWere and Bell Potter are running the book.

The $41m institutional portion of the offer opened this morning with a $3.10 floor set to go up in 5 cent increments.

The raising is fully underwritten, but this is unlikely to be needed after sources described demand as ?extreme?.

Pricing will be settled at completion this afternoon.

Sandfire, a gold and copper concern, also announced today it would place $9m to major shareholder Posco so the Korean steel giant can keep its 17.6 per cent holding in tact and raise up to $15m from a non-underwritten share purchase plan.

The company said it would also place $2.5m to director John Hutton so he could maintain his stake at about 5 per cent.

Sandfire, which recently announced a Phase I JORC indicated and inferred resource of 7.13 million tonnes at its Doolgunna copper-gold discovery in WA, said the funds would go towards continuing exploration at Doolgunna and a Definitive Feasability Study at the DeGrussa zone.

The company's stock last traded at $3.45 before entering trading halt this morning ? the share price was trading at about 50 cents in July last year.