23/06/2008 - 11:03

Malagasy closes $10m IPO early

23/06/2008 - 11:03

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Investors have rushed to fill West Perth-based Malagasy Minerals Ltd's $10 million initial public offer, with so much support that it could have filled the offer nearly three times over.

Malagasy closes $10m IPO early

Investors have rushed to fill West Perth-based Malagasy Minerals Ltd's $10 million initial public offer, with so much support that it could have filled the offer nearly three times over.

The flood of investors meant that the exploration company closed its IPO one week early, and plans to list on the stock market in early July.

Malagasy was offering 50 million shares at 20 cents each.

The full announcement is below:

The Board of Malagasy Minerals Limited is pleased to announce that its Initial Public Offer has closed more than a week early, due to overwhelming investor interest which resulted in the $10 million public offer being heavily oversubscribed.

Malagasy offered 50 million new shares at 20 cents each to raise a maximum of $10 million and expects to list on the ASX in early July 2008. Malagasy will trade under the ASX ticker code MGY.

Malagasy Chairman Max Cozijn said investor interest had been so strong that Malagasy could have filled the Offer nearly three times over.

The strong interest reflected the word-class potential of Malagasy's 6,300 square kilometres of 100%-owned tenement holdings on the island of Madagascar and the benefits of its acquisition of the Madagascar-based drilling, assaying and exploration services business of Bureau de Recherche Géologiques et Minières (BRGM).

"Malagasy has assembled an extensive world-class portfolio of eight base metals and coal projects on an island that is only now starting to gain recognition as one of the world's last great frontiers for mineral exploration," Mr Cozijn said.

"With the funds raised from the IPO, we believe we are in an excellent position to quickly confirm the potential of our holdings, through an aggressive initial exploration program which will include some 24,000m of drilling at our highest priority targets over the next 18 months.

"I and the rest of the Malagasy team look forward to starting our exploration program with enormous enthusiasm and confidence."

Mr Cozijn said proof of Madagascar's vast mineral potential could be seen in the significant investment currently committed to major mining projects such as Rio Tinto's $US1.5 billion Fort Dauphin mineral sands project and Sherritt/Dynatec Corporation's $US3.2 billion Ambatovy laterite nickel development.

Madagascar also boasts a stable democratic political environment, a modern and transparent mining code and strong mining culture.

Malagasy's priority target is the Ampanihy project, 600 km south of the capital Antananarivo, a major Voiseys Bay-style nickel-copper-PGE target marked by strong coincident geochemical and aeromagnetic anomalism. Sampling in these areas has confirmed the presence of disseminated sulphides, including results grading up to 0.67% Ni, 0.64% Cu, 0.12% Co, 26ppb (Pt+Pd) and 21ppb Au.

The Ianapera coal project, immediately west of the Ampanihy project, is another high priority target, and hosts approximately 23 strike km of delineated coal beds comprising the eastern portion of the prospective Sakoa coal field. This year alone, two separate deals, collectively worth up to $394 million, have been announced to acquire coal tenements overlying the western portion of the Sakoa field, which abut Malagasy's Ianapera tenements.

The Board of Malagasy wishes to thank all applicants for their strong support and apologises to all those who were unsuccessful.

Malagasy also wishes to thank Element Capital Pty Ltd, for its excellent efforts as Lead Manager to the Offer.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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