21/12/2007 - 13:21

Perseus Mining eyes $58m equity, Canadian listing

21/12/2007 - 13:21

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Balcatta-based gold explorer Perseus Mining Ltd is planning to launch a $58 million capital raising, ahead of listing on the Toronto Stock Exchange.

Perseus Mining eyes $58m equity, Canadian listing

Balcatta-based gold explorer Perseus Mining Ltd is planning to launch a $58 million capital raising, ahead of listing on the Toronto Stock Exchange.

The Australian Securities Exchange-listed company has also announced that it will transfer its gold exploration assets in the Kyrgyz Rebublic in central Asia to aspiring gold company, Manas Resources Ltd.

Perseus is the latest of several Western Australian companies to list on both the Australian Securities Exchange and the Toronto Stock Exchange, reflecting the growing popularity of the TSX as the world's leading mining exchange.

Most of the WA companies listing on the TSX have international operations, particularly in South America, Africa and Asia, and believe the Canadian exchange helps to gain more support from international investors.

Perseus has appointed Canadian broking firm Cormark Securities Inc to manage the raising of up to $46.4 million (CDN$40 million) in North America and the company's listing on the TSX.

Perseus aims to raise an additional $11.6 million (CDN$10 million) by offering shares to Australian and other investors.

The share offer price for the total capital raising will be negotiated and agreed with Cormark prior to the lodgement of the prospectus with Canadian regulators.

Perseus said the listing and associated capital raising was intended to provide it with the necessary funds to ensure the rapid development of its Ghanaian and Ivory Coast gold projects, including completion of pre-feasibility and bankable feasibility studies.

"A TSX listing will give Perseus significant access to North American capital markets where recent experience of other Australian resource companies suggests that a TSX listing leads to a re-rating of market values of such companies," the company said.

"North American investors appear more accepting of West African gold explorers and producers."

Perseus said Manas would launch an initial public offer in late January 2008, where it would seek to raise up to $5 million ahead of listing on the ASX in late February 2008.

Manas will issue 25 million shares at 20 cents each to raise between $4 million and $5 million to finance the future gold exploration expenditure of the Kyrgyz assets.

Perseus shareholders will be offered shares in the IPO on the basis of one Manas share for every seven Perseus shares held.

On successful completion of the raising, Perseus will retain an equity interest in Manas of about 42 per cent.

The Manas board composition and management team is expected to be finalised over the coming weeks.

 

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