why the fall?, page-5

why the double talk ? What was his point in saying this and then refuting it in an announcement to the ASX??

Does this look like a clever ploy to tell people what is down the track so as to create some interest in Michelago

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http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=6349539



LONDON, Sept 27 (Reuters) - Australian gold miner Michelago Ltd (MIC.AX: is likely to list on London's Alternative Investment Market (AIM) within the next 12 months to help fund Chinese expansion plans, its managing director said on Monday.

Peter Secker said Michelago would probably transfer its primary listing to London, but retain a secondary listing in Australia -- a move he hoped would raise 20 million pounds ($36 million) in capital for new projects.

"It is a likely scenario we would list in the next 12 months for a specific project ... but hopefully much sooner,"
he told Reuters on the fringes of a presentation to mining analysts and brokers.

"We would be looking for 5 to 10 million pounds ... I think 20 million would not be an unrealistic target."

Small mining companies from countries such as Australia and Canada have flocked to list on AIM in recent years, attracted by the bourse's proximity to London-based investor funds and the idea that AIM-listers accountability has been rigorously tested.

Secker said the firm was actively looking at a number of operations it might use the raised funds for, but declined to give specific details.

"We would buy one of the mines that we currently take concentrate from or buy a foreign company that has the short-term potential to yield some assets," Secker said.

Secker's visit to London came as part of a European roadshow by Michelago, outlining a nearly-done deal with fellow-Australian Sino Mining to buy 82 percent of its BioGold plant for A$13 million ($9.3 million).

The deal, waiting for final approval from financier Bank of China, should be completed in the next 3 months, he said.

The plant in China's Shandong province, which should produce 160,000 to 170,000 oz of gold this year, uses "Bacox" microbes to remove damaging sulphur deposits from the ore and help it meet China's tightening environmental standards.

Gold mining in China -- the world's fourth largest producer -- has only recently opened up to foreign investors after a 2002 law allowed overseas companies to own gold deposits. The law states that all gold must be sold on the Shanghai Gold Exchange or to the Bank of China, Secker said.

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30 September 2004
Company Announcements Platform
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam

Clarification of Reuters Article 28 September 2004
In relation to an article published by Reuters (London) on September 27 (September 28 Aust.) the
Company wishes to clarify the following issues.
1. Michelago does not currently have any specific proposal, timetable or target fundraising in
relation to a possible London Alternative Investment Market (AIM) listing. The Company
regularly assesses alternative fund raising proposals, some of which involve alternative
market listings outside of Australia, as part of the corporate development of the Company
and potentially in order to fund the Company�fs expansion plans in China and the Pacific
Rim. In the event that the Company decided to undertake an AIM listing, or for that matter
any other fundraising or alternative market listing, appropriate disclosure would be made at
that time.
2. Michelago alone is proposing to acquire an 82% interest in the BioGold Facility in Shandong
Province, China. Sino Gold Ltd has nothing to do with the transaction, as reported in the
article.
If you have any further enquiries please call the Company on 02 9299 8821.
Yours sincerely
Michelago Limited
Peter Secker
Managing Director