Horseshoe Metals raises AU$7 million from IPO - to list tomorrow

KEY POINTS:

• WA-focused resources company Horseshoe Metals Limited (HML) will list on ASX tomorrow following the completion of its successful AU$7million IPO;
• HML have secured a 297 square kilometre tenement package which includes Horseshoe Lights and Kumarina projects located in the Peak Hill Mineral Field of Western Australia;
• Projects are located in a very prospective area, highlighted by the recent discovery of the nearby Doolgunna copper/gold deposit by Sandfire Resources NL;
• On listing, Horseshoe Metals will have 56 million shares on issue and 29.97 million options, capitalising the Company at A$11.22 million at the issue price; and
• ASX listed resources company Grange Resources Limited to be a significant shareholder in HML, holding 3.9 million shares (7.2 per cent of the issued capital). 

Western Australia focused copper and gold company Horseshoe Metals Limited (ASX:HOR) (“Horseshoe” or “the Company”) will make its debut on the Australian Stock Exchange (ASX) tomorrow (Thursday 29 July) following completion of a successful Initial Public Offer (IPO) in June 2010 which raised AU$7million.

The capital raising was managed by leading Western Australian corporate advisory firm Azure Capital Limited, with fellow Western Australian stockbroking firm CPS Securities Limited also assisting Azure Capital in its fundraising endeavours.

On listing, Horseshoe Metals will have 56 million shares on issue and 29.97 million options, capitalising the Company at AU$11.22 million at the issue price.

ASX listed resources company Grange Resources Limited (ASX: GRR) (“Grange”) will be a major shareholder of Horseshoe, holding 3.9 million shares on listing (~ 7.2 per cent of the issued capital of the company).

The key assets of the Company include 100 per cent rights to the Horseshoe Lights and Kumarina projects (refer figure 1), which cover more than 297 square kilometres in the resource rich Peak Hill Mineral Field of Western Australia.

The Horseshoe Lights Project includes the closed Horseshoe Lights mine, which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper. The mine has an existing JORC compliant Inferred Mineral Resource of 4.9 million tonnes at 1.0 per cent copper (containing 48,000 tonnes of copper metal).

Copper mineralisation was discovered at Kumarina in 1913. Although approximately 580 tonnes of copper metal is reported to have been mined from the Kumarina Project, the current tenement area has been subjected to only limited modern exploration. Consequently, the project is considered to be at a very early stage of assessment with good potential for the discovery of additional copper mineralisation.

Horseshoe Metals Managing Director Neil Marston said the success of the listing would enable the company to focus significant resources to two highly prospective projects in an emerging Western Australian copper/gold province, with both having significant historical copper/gold mineralisation and proven resources.

“The level of response to the IPO was exceptional, representing an important litmus test of the level of long-term investor support for quality exploration plays in the copper industry,” Mr Marston said.

“With funds raised we will now focus aggressively on the exploration of our two flagship projects, which in our view and despite historical exploration and mining activities occurring have immense potential.

“Both projects have been subjected to limited modern exploration and are located within an emerging Western Australian copper/gold province, highlighted by the recent discovery of the nearby Doolgunna copper/gold deposit by Sandfire Resources which has lead to a significant increase in the awareness and interest in the region, with a corresponding increase in the level of exploration.”

The funds raised by the IPO will be used to provide funding to commence exploration of the Horseshoe Lights and the Kumarina Projects in Western Australia and to complete related test work and studies, including mapping, sampling and drilling.

“At the Horseshoe Lights Project we believe there is the opportunity to increase the zone of mineralisation with untested zones representing the highest priority for our drilling programmes,” Mr Marston said.

“Recent work at Kumarina has identified over 20 copper exploration targets, the best of which will be the focus of our upcoming exploration activities. We are planning to commence exploration at Kumarina as soon as practically possible.

“We will also be looking to access additional copper resources in the region around the projects through asset and corporate acquisitions.”

The Directors of Horseshoe Metals Ltd are well experienced with strong technical backgrounds, with extensive corporate and exploration expertise, with the exploration team including specialist geoscientists. Full details of the board and their respective experience are provided in the Editors Notes.