Not a bad share to own in 2009/2010 I expect. Congrats to long term holders.
Sydney - Tuesday - May 26: (RWE Aust Business News) -CGA Mining Limited (TSX Code: CGA; ASX Code: CGX) reports it has engaged Haywood Securities Inc to act as agent for a C$17 million private placement offering of ordinary shares. The proceeds, in combination with existing cash reserves, are proposed to be utilised to supplement working capital during the initial months of production at the Masbate Gold Mine. The pouring of gold has commenced and the first shipment is scheduled for delivery to the refiner, Metalor Technologies SA in Switzerland, later this week. The plant is operating well, with the power station now fully commissioned, together with the crushing, leach and gold recovery circuits. Currently the operation is running with the SAG mill and one ball mill, and is achieving near design throughput of 540 wet tonnes per hour. When the second ball mill is brought on line, the expectation is to exceed design parameters, with a target throughput of about 600 tonnes per hour (or in the order of 5mtpa). To date, the power draw has been lower than originally anticipated and grade control drilling has continued to confirm the original reserve modelling. Commercial production is currently anticipated to be achieved in June 2009. The ordinary shares will be issued at a price of C$1.35 per share (A$1.54 equivalent). The offering is subject to any required regulatory approval and is expected to close on or about June 12, 2009.
About CGA Mining --------------- CGA is listed on the Toronto Stock Exchange and Australian Securities Exchange. The Masbate Gold Project in the Philippines was successfully constructed with first gold poured on 12 May 2009. The project which is currently ramping up to full production has a total indicated resource base of 4.55M ounces, total inferred resource base of 3.22M ounces and a probable reserve of 3.03M ounces of gold. It is currently forecast to produce over 200,000 ounces per annum. The 4Mt per annum plant was constructed by Leighton Contractors Asia Limited without one lost time injury. The mining contract for the project has also been awarded to Leighton, the largest mining contractor in the world. CGA is completing a scoping study for the expansion of the plant throughput at Masbat.
CGX Price at posting:
$1.66 Sentiment: LT Buy Disclosure: Not Held
