Spitfire Resources Limited announced that it has firm commitments to raise AUD 2.64 million through a share placement to new and existing strategic and sophisticated investors to underpin ongoing aggressive exploration programs at its flagship South Woodie Woodie Manganese Project in Western Australia.

The funds raised will strengthen Spitfire's cash position to over AUD 6 million, enabling it to maintain its current exploration momentum at South Woodie Woodie, where it has so far discovered three deposits including the rapidly emerging Contact and Contact North deposits.

The share placement, comprising 20.32 million shares at 13 cents per share, is being made within the 15% limit allowed under the ASX listing rules. All of the shares issued under the placement are fully paid ordinary shares and will rank pari passu with existing ordinary shares.

The company's existing major shareholder, Prosperity Steel United Singapore Pte Limited, has agreed to subscribe for AUD 1.04 million worth of shares, with the balance of the placement being taken up by sophisticated investors. The funds raised will be used for:

1. Upcoming Gradient Array IP program at South Woodie Woodie over multiple high priority targets around the Contact and Contact North deposits

2. The Phase III drilling program at South Woodie Woodie, which is scheduled to commence in October, including in fill and extension drilling at Contact North and initial drill testing of other high priority targets

3. General working capital

The company recently announced that it had identified a significant pod of high grade manganese mineralization featuring some of the best intersections seen at South Woodie Woodie to date.