Adelaide, Sept 21, 2006 (ABN Newswire) - The Initial Public Offer (IPO) for West African gold and base metals explorer, Shield Mining Limited (ASX: SHX), has closed oversubscribed and it will now list on the Australian Stock Exchange next Wednesday, September 27, 2006.

The new explorer, a result of the gold and base metals spin off by ASX-listed iron ore company, Sphere Investments Limited, said today that its offering of up to 7.5 million ordinary shares at 20 cents each to raise up to a total of $1.5 million, had been successful.

Based on the IPO price, Shield Mining's market capitalisation at listing will be around $6.5 million with approximately $5.6 million in cash, including $4.4 million from Sphere Investments.

"This is an exceptionally strong start to our aggressive exploration agenda which has commenced across our Mauritanian projects with the exploration team already in the country," Shield Mining's Managing Director, Mr David Netherway, said today.

"Our first priority will be a review of data from a licence known as Conchetta Florence in the northern region of Mauritania which covers a 160 km strike target area," Mr Netherway said.

"Previous work on this area was carried out in the 1980s and preliminary findings indicated significant exploration potential for mesothermal gold and base metals and iron oxide copper gold. "

In addition, Shield Mining has a further four exploration licenses (ELs) in the northern part of Mauritania, covering a total area of 7,381 kmSq, with six other EL applications pending.

"Shield Mining will also be looking to add new ground to its portfolio in Mauritania and elsewhere," Mr Netherway said.

In announcing the IPO last month, Shield Chairman, Mr Alexander Burns, said the main reasons for spinning off Sphere's gold and base metals assets included the newly available data uncovering exploration potential, the strong outlook for gold and base metals prices and the development of two gold/copper mines in Mauritania, Tasiast and Guelb Moghrein.


"The development of these mines and the lack of regional exploration show the potential for new commercial discoveries and mine developments in Mauritania," Mr Burns said.

"The country has recently attracted serious foreign direct investment in its under-explored but highly prospective mining sector.

"Shield Mining is to undertake an aggressive exploration campaign on the back of its IPO success."