Mineral Deposits Limited

Mineral Deposits Limited

March 23, 2009 18:48 ET

Mineral Deposits Limited: C$33 Million Placement

MELBOURNE, AUSTRALIA--(Marketwire - March 23, 2009) -


Mineral Deposits Limited (TSX:MDM)(ASX:MDL) today announced that, subject to execution of definitive documentation and closing, it will undertake a private placement of 63.6 million new ordinary shares at C$0.52 (approximately A$0.62) per share raising C$33.1 million (approximately A$39 million/US$27 million).

The placement shares will be placed with a limited number of Canadian institutions, with the raising managed by Toll Cross Securities Inc. and Cormark Securities Inc. Settlement is expected to occur on or about 30 March 2009.

The proceeds of the placement, together with available credit lines, will be used to repay a US$35 million working capital facility provided by RMB Australia Holdings Limited and Macquarie Bank Limited.

Share Purchase Plan

The company also plans to offer shareholders resident in Australia or New Zealand the opportunity to subscribe for new shares in the company via a Share Purchase Plan (SPP). Eligible shareholders (those on the register at 7pm on 27 March 2009) will be able to purchase new MDL shares up to a maximum value of A$10,000 (subject to expected ASIC relief and ASX waiver). The price at which shares are issued under the SPP will be A$0.62. The company will reserve the right to scale back applications (partially or entirely) at its discretion. Full details of the SPP will be provided in documentation to be sent to shareholders.

Commencement of Gold Production at Sabodala

As announced on 19 March 2009, gold production commenced at the Sabodala plant last week with the pouring of first gold. The Sabodala plant has commissioned smoothly with no significant issues and is already operating above nameplate capacity. The company expects to produce approximately 160,000 ounces of gold this calendar year.

US Disclaimer

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

ABN 19 064 377 420

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