Gold-producer Medusa Mining (ASX: MML, LSE: MML) is looking to raise A$25.0 million (£14.8 million) by way of a non-underwritten placement, priced at A$1.80 per new share to institutional and other investors.
The placement will be conducted by way of a volume only bookbuild process in Australia.
Medusa will allocate the funds to three main areas, including to pay down outstanding trade creditors to normal operating levels and to partly pay down the company's working capital facility with Philippine Banks.
The company will also use the additional funding for working capital to maintain a prudent liquidity buffer pending the commencement of production from the its new Co-O Mill.
Medusa is on a growth path to annual production of 200,000 ounces following commissioning of new Co-O Mill.
Placement breakdown
- A$16.9 million under the Company’s 5% placement capacity (Tranche 1); and
- A$8.1 million, subject to shareholder approval of further placement capacity at the Company’s AGM on 22 November 2013 (Tranche 2).
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