Medusa increases capital raising stakes
PERTH (miningweekly.com) – Gold miner Medusa Mining on Friday announced that it would increase its capital raising expectations to A$34-million, instead of the original A$25-million, following significant demand.
The miner had set an issue price of A$1.80 a share, which was a 10% discount to the last closing price on October 30.
Medusa said that the placement had enjoyed strong demand from existing shareholders and new investors alike, with the company receiving binding commitments from investors to subscribe for A$34-million in shares.
The funds raised would be used to pay down outstanding trade creditors, to partly pay down the working capital facility with Philippine banks and to fund the working capital to maintain a liquidity buffer pending the start of production from the Co-O mill, in the Philippines.
In its quarterly results for the three months to September, Medusa warned that commissioning of the new mill had been delayed owing to powercell failures. This resulted in gold production for the quarter reaching only 14 502 oz.
The Co-O mill expansion was approved in November 2010, with the mill expected to produce some 200 000 oz/y of gold, based on the processing of up to 750 000 t/y of ore reserves.
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