Medusa raises over $3m to fund new mine development

Como-based mining explorer Medusa Mining Ltd has raised $3.356 million to fund the major expansion of its program in the Philippines.

The placement was of 5.59 million ordinary shares at an issue price of 60 cents per share to sophisticated investors from the UK and clients of State One Stockbroking and Delta Securities.

In May the company announced, through its subsidiaries and in joint venture with Philsaga Mining Corporation, the signing of a joint venture agreement with MRL Gold Phils. Inc. and an underlying claim over the Apical Gold project in the Philippines.

At market close, shares in Medusa were up 4.5 cents to 61.5 cents.

Below is the full announcement:

FUND RAISING FOR NEW MINE DEVELOPMENT
Medusa Mining Limited advises that it has successfully raised A$3.356 million via the placement of 5,593,334 ordinary shares at an issue price of A$0.60 per share to sophisticated investors from the UK and clients of State One Stockbroking and Delta Securities.
The proceeds raised through the placement will be used by the Company to embark on a major expansion of its program in the Philippines of:
- Resource expansion;
- New mine underground exploration and development, and
- Porphyry copper-gold target definition.

Resource expansion
The completion of the 3W shaft in the Co-O Mine will enable the cutting of drilling positions on the 3050m level (approximately 100 metres below adit level) to facilitate drilling of the Central Vein at depth below this level. Drilling will also be conducted at later date to search for parallel veins north and south of the known Co-O Veins.
Drilling of extensions to the west and east of the Co-O Mine vein zone and new veins will be undertaken.
New mine underground exploration and development
Underground exploration is commencing on the Tambis and Anoling projects and on veins adjacent to the Co-O Mine with the aim of defining new resources and developing supplemental ore sources. This work will involve exploration winzes, adits and shafts.

Porphyry copper-gold targets
Investigation of the known Lingig porphyry copper target and extensive areas of alteration and veining at Co-O and Tambis, and alteration only at Saugon will be undertaken to determine if drill targets are present. Work will involve collation of old data, mapping, surface geochemistry and possibly ground geophysics.
Masapelid Island
The Company is earning an 84% interest in the Masapelid Island project which was an underground narrow vein mine pre-World War II. Data collation and surface work will be followed by first pass drilling.