re: suspension from official quotation the detail 15 Million...

re: suspension from official quotation the detail 15 Million Dollars Placement To Institutional Investors
Tuesday, 6 June 2006 : Mintails Limited (ASX: MLI) is pleased to announce that it has reached agreement for the private placement of up to 60.0 million ordinary shares at a subscription price of $0.25 (25 cents) each to Australian and international institutional investors. These new ordinary shares will rank parri passu with the Company’s existing ordinary shares.
On the basis that shareholder approval is obtained and the placement is fully subscribed, the issue will raise $15 million before allowing for costs associated with the issue. The placement will be undertaken in two stages, comprising an initial unconditional allotment of approximately 21.0 million new shares in accordance with Rule 7.1 of the ASX Listing Rules and a further allotment of approximately 39.0 million new shares subject to the approval of Mintails shareholders. A notice of meeting will be dispatched to shareholders as soon as possible in respect of this issue.
Funds raised from the placement will be predominantly applied towards the final satisfaction of judicial management obligations, to take advantage of potentially favourable early repayment of pre-existing debt opportunities, to commence the acquisition of new plant and equipment as a precursor to the Company’s stage 2 development plans, to pursue opportunities to secure additional new tailings projects within the region and for working capital purposes. The placement is being managed by Bell Potter Securities Limited. A placement fee of 6% on the amount raised will be paid.
Mintails CEO, van der Walt commented “We are delighted to have received such strong support from a number of substantial and highly regarded international institutional investors. This capital raising will assist the company to accelerate its development strategies and to pursue a number of corporate and financial opportunities which have been presented to us as a consequence of having commenced production at the West Rand Gold Project.
Mintails has established itself as a credible operator on the West Rand and expects to be producing an average of 3,750 ounces of gold per month (45,000 ounces p.a.). Final testing of the sands circuit is nearing completion and we anticipate that it will come on-stream on 10 June, thereby providing the Company with close to full gold production for the month of July.”