03/10/2006 - 22:00

Medusa expansion gaining momentum

03/10/2006 - 22:00

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With shareholder backing, Como-based gold company Medusa Mining Ltd is set to list on London’s Alternative Investment Market, embark on a $15 million capital raising and merge with its partner Philsaga Mining Corporation.

Medusa expansion gaining momentum

With shareholder backing, Como-based gold company Medusa Mining Ltd is set to list on London’s Alternative Investment Market, embark on a $15 million capital raising and merge with its partner Philsaga Mining Corporation.

The company believes the $13 million Philsaga share sale deal will assist Medusa to strengthen its position as a Philippines-based gold producer and explorer.

Under the deal, Medusa and its subsidiary Medusa Overseas Holding Corporation will buy the entire shareholding of Davao Philsaga Holdings Inc and Tasco Development Company, providing Medusa with a downstream interest in all the shares of Philsaga and its assets, located in the central eastern Mindanao in the Philippines.

The deal is expected to be finalised once Medusa lists on the AIM within the next three months.

Medusa managing director Geoff Davis said the secondary listing on AIM would provide the company with greater access to capital markets to help expand its Philippine assets.

“The Philsaga transaction will give Medusa control of a profitable, high-grade mining operation, an initial production of about 40,000 ounces on an annualised basis and centrally located mining facilities which can be expanded as production increases,” he said.

“The deal also gives Medusa control of more than 700 square kilometres of highly prospective tenements [around its Co-O gold mine and processing plant].”

To help pay for the Philsaga share sale deal and AIM listing costs, Medusa will undertake a $15 million capital raising and will focus on investors and key institutions based in the United Kingdom.

The company has appointed Ambrian Partners Ltd as the broker and nominated advisor for their AIM listing.

Earlier this year, Medusa raised $3.4 million to fund the major expansion of its program in the Philippines and signed a joint venture agreement with MRL Gold Phils. Inc and an underlying claim over the Apical Gold project.

Medusa follows a number of other recent dual-listed, Perth-based companies including technology and minerals development company Carnegie Corporation Ltd and Mineral Securities Ltd, which simultaneously commenced trading on the AIM and the Toronto Stock Exchange in August.

Medusa listed on the ASX in December 2003 and has been working in the Philippines since early 2003 with management having over 25 years’ experience in the region and neighbouring countries.

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