News

SPITFIRE Resources will debut on the Australian Securities Exchange in mid December after its $A6 million initial public offering closed a week early and heavily oversubscribed.

Spitfire lodged its prospectus with the ASX on October 22, offering 20 million shares at 20c each to raise $4 million.

The further $2 million came from issuing 10 million shares in oversubscriptions.
The revenue will fund exploration at the company's flagship South Woodie Woodie manganese project in Western Australia's east Pilbara.

"We are delighted with the investor response, which reflects the potential of our South Woodie Woodie project combined with a very high level of market interest in manganese assets worldwide," Spitfire managing director James Hamilton said.

"The significant manganese price increases seen this year reflect strong underlying demand and
tightness in supply, which is putting the spotlight on potential new supply sources.

"Spitfire has a simple and focused exploration and growth strategy, based on an initial aggressive
exploration program to test eight priority manganese resource targets at South Woodie Woodie in March at the start of the 2008 field season."

Spitfire will have 61 million shares on issue at the completion of the IPO and project vendor Churchill Mining will hold 25 million shares or 41% as vendor consideration.

The Perth-based company has an 80% interest in South Woodie Woodie with the option to purchase the final 20% for $3 million, and by spending $1.5 million on exploration within 18 months from date of listing.

Lorna Seatter,  November 28, 2007, MiningNewsPremium.Net