Perseus Mining plans $139m raising

Perseus Mining is set to tap equity markets again to raise up to $139 million through an underwritten share offering, a private placement and a share purchase plan.

The Balcatta-based company has entered into an agreement with Canada's Cormark Securities Inc, which is representing a syndicate of underwriters, to buy and sell to the public 44 million shares at $C1.80 ($A1.92).

Perseus is dual-listed on the Toronto Stock Exchange and on the Australian Securities Exchange.

The underwriters will also have an option to exercise in whole, or in part, an additional 6.6 million Perseus shares.

Should the underwriters take that option, a total of $C91.08 million will be raised.

In addition, Perseus intends to undertake a private placement of up to 15 million shares to Australian investors, with each share priced at $A1.94.

The placement will be managed by BGF Equities.

Further to the private placement, Persues will also carry out a share purchase plan, offering a maximum of 7 million shares at $1.94 each.

"The Offering, the Private Placement and the SPP will further strengthen the Company's balance sheet as it positions itself for gold production at the Central Ashanti Gold Project in Ghana in 2011," Perseus said in a statement.

"The net proceeds of the share issues will be used to fund on-going exploration and development of the Company's West African gold properties and for general corporate purposes."

The latest capital raising comes nearly six months after Perseus raised $58.5 million to fund construction of its Aranfuri gold project.

The announcement is below:

Perseus Mining Limited (the "Company or "Perseus") has entered into an agreement with Cormark Securities Inc. on behalf of a syndicate of underwriters consisting of Cormark Securities Inc., Clarus Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and Dundee Securities Corporation (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to buy and sell to the public 44,000,000 ordinary shares of the Company at a price of CAD$1.80 per ordinary share, for gross proceeds to the Company of CAD$79,200,000 (the "Offering"). The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 6,600,000 ordinary shares of the Company. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be CAD$91,080,000. Closing of the Offering is expected to occur on or about 29 April, 2010 and is subject to regulatory approval including that of the Toronto Stock Exchange.

The ordinary shares to be issued under the Offering will be offered by way of a short form prospectus in all provinces in Canada, except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States
Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the Company and the Underwriters.

Subject to shareholder approval, the Company also intends to complete a private placement of up to 15 million ordinary shares, primarily to Australian investors, on a best efforts basis (the "Private Placement"). The Private Placement will be managed by Australian securities advisory firm, BGF Equities Pty Ltd. In addition, the Company intends to undertake a share purchase plan (the "SPP") under which a maximum of 7 million ordinary shares will be offered to shareholders of the Company with registered addresses in Australia and New Zealand as at close of business on Thursday, 8 April 2010. Shares offered under the Private Placement and the SPP will be issued at AUD$1.94 each, the Australian dollar equivalent of CAD$1.80. Closing of the Offering is not conditional upon the closing of the Private Placement or the SPP.

The Offering, the Private Placement and the SPP will further strengthen the Company's balance sheet as it positions itself for gold production at the Central Ashanti Gold Project in Ghana in 2011.

The net proceeds of the share issues will be used to fund on-going exploration and development of the Company's West African gold properties and for general corporate purposes.