29/09/2006 - 15:02

Medusa wins shareholder approval for $15m capital raising

29/09/2006 - 15:02

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Como-based gold company Medusa Mining Ltd has won shareholder approval for its plans to list on London's Alternative Investment Market later this year, embark on a $15 million capital raising and merge with Philsaga Mining Corporation.

Medusa wins shareholder approval for $15m capital raising

Como-based gold company Medusa Mining Ltd has won shareholder approval for its plans to list on London's Alternative Investment Market later this year, embark on a $15 million capital raising and merge with Philsaga Mining Corporation.

The companies also announced today that their second joint venture - the Tambis Banaghilig Mine gold project in the Philippines - is progressing rapidly, with the first batch treatment due to occur in late October or early November.

 

The full text of a Medusa announcement is pasted below

Shareholders in gold company Medusa Mining Ltd have approved the company's plans to list on London's Alternative Investment Market later this year, embark on a $15 million capital raising and merge with Philsaga Mining Corporation.

At a meeting earlier today shareholders in the Company voted in favour of the $13 million Philsaga Share Sale Deal, which will help Medusa cement its position as a significant Philippines-based gold producer.

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, giving Medusa a downstream interest in all the shares of Philsaga and its assets, located in central eastern Mindanao, in the Philippines. The deal will be finalised when Medusa lists on AIM within the coming three months.

The company will now undertake the $15 million capital raising, focusing on sophisticated investors and key institutions based in the UK, to pay for the $13 million Philsaga Share Sale Deal and costs associated with the AIM listing.

Medusa managing director Geoff Davis said the secondary listing on AIM would give the company 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," Mr Davis said.

"The deal also gives Medusa control of more than 700 sqkm of highly prospective tenements."

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

Medusa recently appointed non-executive director Dr Robert Weinberg, an independent mining research analyst and consultant to boost the company's representation in London and Europe.

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