Medusa Mining Limited

Medusa Mining Limited

September 01, 2010 03:23 ET

Medusa Mining Limited: Proposed Dividend and Amendments to Constitution

COMO, WESTERN AUSTRALIA--(Marketwire - Sept. 1, 2010) - The Directors of Medusa Mining Limited (TSX:MLL)(ASX:MML)(AIM:MML) ("Medusa" or the "Company") give notice that a general meeting of members will be held at the Esplanade River Suites, 112 Melville Parade, Como, Western Australia on 6 October 2010 at 10.00 am (Perth time) ("Meeting"). 

The purpose of the Meeting is to propose to members special resolutions to amend the Company's constitution.

A key proposed amendment is to remove the restriction that dividends can be paid only out of profits of the Company. This follows recent changes to the Corporations Act 2001 (Cth) that replaced the former profits test with a new three-tiered test which permits payment of dividends in circumstances other than out of profits. 

Subject to the passing of this resolution, the Directors propose that the Company pay an unfranked dividend of A$0.05 per share. The record date for determining those shareholders on the register entitled to the dividend will be 15 October 2010, which is seven business days after the date of the Meeting. The ex-dividend date will be 11 October 2010 and the dividend is expected to be paid on 8 November 2010. There is no foreign conduit income attributed to the dividend. 

The other proposed amendments to the Company's constitution include the insertion of pre-emptive rights provisions in respect of new issues of shares for cash. The Directors consider that such provisions, which are designed to protect Shareholders' interests in the Company, are appropriate for a company seeking admission to the Main Market of the London Stock Exchange.

A separate special resolution will be proposed to seek approval to re-insert proportional takeover provisions into the Company's constitution. The constitution previously contained proportional takeover provisions which have now lapsed. The proposed proportional takeover provisions are substantially the same as the previous provisions. 

The Notice of Meeting (including Explanatory Notes) will be dispatched to shareholders shortly.

Managing Director, Geoff Davis commented:

"It is with considerable pride that the Board announces a maiden unfranked dividend of A$0.05 per share, made possible by recent changes to the Australian Corporations Act.

The Board acknowledges that Medusa is in a fortuitous position with its Co-O Mine generating strong and positive cash flow and is aware that it needs to strike a balance between returns to shareholders and the future capital requirements of the Company's planned organic growth.

On the proviso that the strong cash flow generated from the Co-O Mine is sustainable, it is the Company's intent to reward its shareholders with dividend payments after taking into account the Company's future cash requirements and position."

ABN: 60 099 377 849

Contact Information

  • Australia:
    Medusa Mining Limited
    Geoffrey Davis
    Managing Director
    +61 8 9367 0601
    Medusa Mining Limited
    Roy Daniel
    Finance Director
    +61 8 9367 0601
    United Kingdom:
    Fairfax I.S. PLC
    Nominated Adviser/ Broker
    Ewan Leggat/Laura Littley
    +44 (0)20 7598 5368
    Lothbury Financial Services Limited
    Michael Padley/Libby Moss
    +44 (0)20 7868 2010
    Nicholas Sayce
    Investor Relations
    +1 416 822 4404