mdl announcement re ipo fully underwritten

Really appreciate the input from others on this forum ... hopefully this is of help to others.

People seem to have missed that on Friday morning MDL released an announcement that they have a syndicate of underwriters for the Canadian IPO as paraphrased below:


re: IPO's
(the Canadian Offering) of 32,000,000 shares of Teranga at a price of C$3.00 per Common Share, for gross proceeds of C$96 million.

"Teranga also shortly intends to file a prospectus in Australia for an additional public offering of Common Shares (the Australian Offering).
It is anticipated that the total proceeds from the Canadian Offering and the Australian Offering will be at least C$120 million".

"The Canadian Offering is being made pursuant to the terms of an underwriting agreement dated November 11, 2010"

..... "syndicate of underwriters co-lead by Cormark SecuritiesInc. and GMP SecuritiesL.P., and includes CIBCWorld Markets Inc., RBC Dominion Securities Inc., Mackie Research Capital Corporation, Paradigm Capital Inc., Scotia Capital Inc. and Toll Cross Securities Inc. (collectively, the Underwriters)."


Which means:
This takes away most of the uncertainty re IPO in Canada or Australia
Plus
$48mn cash coming into MDL as repayment of loan (to get on with Grande Cote)
Plus
Teranga gets cash it needs to expand operation at Sabodala


To me this clears up most of the uncertainty re IPO's and gives both companies the cash they need to implement their growth strategies.

NB: I bought some more on friday ... so I'm definitely biased but both these companies seem setup cashwise to grow rapidly .... and both now have management that is business specific focused and has extensive experience in developing companies at a similar stage in their development.

NBB: Short term as gold bugs get out of MDL and institutions get out of Teranga + MDL does it's share consolidation and unsure if it will slip out of ASX 300 (and if so what whether that will have a significant effect) ..... so the share price could move sideways, but reasonably soon I think both companies will gain new core supporters and I intend to be on-board for a fair while yet.

Cheers
BB


Note: This information is for entertainment purposes only and you should do your own research prior to investing in any companies.