Medusa Mining Ltd (AIM:MML) announced that Gallagher Holdings has become a major investor in Medusa via a placement of shares. The placement was of 17,500,000 fully paid shares at A$1.15 per share and raised A$20,125,000 before costs. Australian based Medusa operates and develops gold mines in the Philippines
The funds raised will be used for early repayment of a deferred vendor debt of A$5 million, to fund a porphyry-copper drilling programme, and to expand exploration activities contingent on the company completing its regional exploration programme.
Following the placement, Gallagher Holdings owns approximately 12.32 per cent of the issued share capital of Medusa. Subject to shareholder approval, to be sought in August, 7,000,000 un-listed options exercisable by
1 February 2009 at a price of A$1.60 will also be issued to Gallagher
Gallagher Holding is the investment company of Mr Alisher Usmanov, and is a substantial shareholder in Mount Gibson Iron Limited. Mr Usmanov is the principal shareholder in the unlisted Metalloinvest Group, which is Russia's largest iron ore producer and fifth largest steel producer