re ian middlemas

Perth dealmakers Ian Middlemas and Mark Pearce have taken board positions at Sydney-based exploration company Xenolith Gold Ltd after backing a placement and rights issue.

Xenolith will make a placement of 35 million shares at six cents each to raise $2.1 million, and a rights issue to all existing and new shareholders on a one for five basis and on the same terms as the placement, which will increase the company's shares on issue to around 94 million.

The placement has been arranged by stockbroking firm Hartleys with the largest subscriber being Mr Middlemas' company Arredo Pty Ltd.

The company holds a 25 per cent stake in and operates a gold project in Indonesia, as well as an 11.1 per cent interest in a gas well via its Canadian subsidiary Xenoil Ltd.

Xenolith, which recently posted a first half operating loss of $166,184, said in an announcement that it planned to continue to focus on creating value from its existing resource assets as well as pursuing new opportunities in the resources sector.

The company will also appoint Mark Pearce to its board, replacing Xenolith's Barrie Tippins as company secretary.

This investment represents a new move for Messrs Middlemas and Pearce, who recently announced plans to launch an $8.8 million initial public offer for the Mozambique copper-gold projects of uranium company OmegaCorp Ltd.

The two also sit on the boards of West Perth-based mineral explorer Indo Mines Ltd and Perth-based copper company Sovereign Metals Ltd