POLARIS Metals spin-off Southern Cross Goldfields has raised $A8 million in its initial public offering ahead of listing on the Australian Securities Exchange.
Southern Cross was spun-out of Polaris to create a company to house Polaris' gold and nickel assets in Western Australia's Yilgarn region.
On listing, Southern Cross will begin an exploration program of its drill-ready targets across 34,000 square kilometres of mineral tenements in the Yilgarn.
Previous exploration within the tenements has identified a resource of 106,000 ounces of gold.
Polaris will continue to hold the right to explore for iron ore over the mineral tenements.
Polaris managing director Jonathan Lea said Polaris would now focus on its key priorities for the first half of 2008 including finishing pre-feasibility studies for its Poondano and Yilgarn iron ore projects, and securing access to nearby infrastructure for both projects.
The Southern Cross board consists of Samantha Tough as chairperson, Antony Truelove as managing director and Vernon Strange and Ian Buchhorn as non-executive directors.
The company was offering 50 million shares at 20c to raise $10 million. Polaris shareholders have exposure to Southern Cross through an in-specie distribution of 22 million shares.
Southern Cross shares are expected to begin trading on the Australian Securities Exchange on March 20.
POL Price at posting:
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