Midas to raise $3m in entitlements issue

Subiaco-based Midas Resources Ltd aims to raise $3 million through an entitlements issue to raise money for further exploration of the company's gold and nickel assets.

The issue, of 50.3 million new shares at 6 cents eachand the same number of options, will be distributed among existing shareholders, one for every two shares held.

The money will be primarily used to fund a pre-feasibility study of the company's Fortitude gold deposit at its Lake Carey project in South Laverton. Midas aims to complete a full feasibility study ahead of a decision to mine later in 2007.

The company will also pursue further exploration of its Queensland projects, and conduct additional drilling in its Uncle Sam project in Alaska.

The deal is underwritten by Patersons Securities Ltd. The company has employed Pullinger Readhead Lucas as Solicitors, and KPMG as auditor.

The prospectus will be dispatched to shareholders on September 19, and acceptances will close on October 4.