Medusa Mining
Medusa Mining is an expanding gold producer in the Philippines, listed on the London AIM and the Australian ASX. Medusa's gold production operations are very robust due to its high grades and low production costs, and over the next 12 to 18 months should expand considerably from an initial annualised 40,000oz as new multiple mines are brought into production to feed a central milling facility. Medusa is focused on expanding its resource base and production profile to benefit not only shareholders but also its employees and local communities. The Company’s exploration upside is rated as excellent for the discovery of new gold and copper-gold deposits.
Medusa Mining leaps on approach from Crosby Capital
Philippines focused gold producer and explorer, Medusa Mining, leapt 24% after Merchant Bank and Asset Management Group, Crosby Capital made an unsolicited offer for the company.
Crosby Capital is offering A$1.15 (52 pence) per shares in cash, valuing Medusa Mining at A$182 million (£82 million), a 21.1% premium to the closing price of Medusa Mining yesterday.
Crosby Capital stated that the offer was conditional on Medusa Mining allowing it to complete due diligence of its reserve estimates, assets and performance. Crosby Capital already holds a 0.28% interest in Medusa Mining, and the Crosby Active Opportunities Fund, which is managed by Crosby Asset Management holds 4.6% - though the company was keen to stress it did not have control or influence over this stake.
Medusa Mining advised shareholders to take no action until it had time to consider the approach.
Medusa Mining’s primary asset is the Co-O Gold Mine, which has a probable reserve estimate of 721,000 tonnes grading 10.77 grams per tonne gold, containing 249,000 ounces. There is also “additional potential” mining inventory of 949,000 tonnes at an estimated grade of 10.6 grams per tonne gold containing a further 323,000 ounces of gold.
Medusa’s gold operations in the Philippines are undergoing an expansion phase to move production up to an initial rate of 40,000 ounces of gold per annum, and eventually a target of 100,000 ounces per annum.
Other Medusa Mining articles
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24/10/08 Medusa Mining has a lot going for it as a low cost gold producer
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25/07/08 Medusa Mining reaffirms target of 100,000 ounces of gold production by 2010
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13/05/08 Medusa Mining – Interview Transcript
Other Medusa Mining news
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01/12/08 Medusa discovers new high grade vein at Co-O gold mine in Philippines
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31/10/08 Medusa Mining increases gold production by 35%
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24/09/08 Medusa Mining says Crosby Capital offer "inadequate and opportunistic"
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26/08/08 Medusa Mining updates JORC reserve estimate for Co-O Mine
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15/08/08 Medusa Mining announces discovery of magnetite-copper-gold porphyry
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12/08/08 Medusa Mining increases gold resource to 0.862 million ounces
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11/06/08 Medusa Mining to drill at Kamarangan in two weeks
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04/06/08 Medusa Mining firms on discovery of more gold veins
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07/05/08 Medusa Mining hits wide, high grade gold vein
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07/04/08 Medusa Mining extends length of Co-0 vein system