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 has a lot going for it as a low cost gold producer
The recent broader market sell-off has resulted in the share price of many fundamentally robust companies being re rated downward. As a result audacious consolidation attempts are growing in number. And with this in mind, gold focused Medusa Mining has been quick to provide comment with respect to Crosby Capital Limited’s proposal to make an unsolicited and conditional takeover offer.
The Medusa board says it has conducted an initial review of the proposed offer and believes that the offer is “inadequate and opportunistic”. It advises shareholders to take no action in relation to Crosby's proposed offer.
For those unaware, Medusa Mining is a burgeoning gold producer in the Philippines. The company boasts robust gold production thanks to high grades and low production costs. Looking ahead, over the next 12 to 18 months the company is set to expand considerably from an initial annualised 40,000 ounces as new multiple mines are brought into production.
Medusa is focused on expanding its resource base and production profile and its exploration upside is rated as excellent for the discovery of new gold and copper-gold deposits. And with gold the safe have at times of financial chaos, no wonder then that Medusa has attracted the attention of Crosby Capital Limited.
Crosby has proposed an offer price of A$1.15 cash per share. The offer price represents a 21.1 percent premium to the near 12 month low closing price on Thursday 18 September 2008.
Medusa has commented that no Bidder's Statement has yet been provided and that the proposed offer is highly conditional, being subject to 21 defeating conditions, including a minimum acceptance level of 90 percent and a detailed investigation and report by an Independent Expert.
The Medusa board notes that the board and management of Medusa together hold 17.15 percent of the issued shares in the capital of Medusa. The board and management do not propose to accept Crosby's offer on the terms announced, and on that basis the 90 percent minimum acceptance condition will not be satisfied.
Furthermore, the board does not consider it appropriate to provide an Independent Expert or Crosby with access to the company's proprietary information in the circumstances and for the purposes indicated in the offer announcement.
Crosby so far holds a 5.14 percent stake in Medusa Mining and it looks like they will have to return with a favourable offer if their takeover objective is to be realised.
Other Medusa Mining articles
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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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19/09/08 Medusa Mining leaps on approach from Crosby Capital
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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