Meekatharra unit seeks Canada listing

Meekatharra unit seeks Canada listing

SYDNEY (Reuter): Australia's Meekatharra Minerals NL said yesterday it plans to raise C$33 million by listing the majority of its Indonesia gold holdings on a Canadian stock exchange.

Meekatharra will offer about 40 percent of MM Gold Corp, a newly-formed Canadian subsidiary owning the Indonesian assets, to institutional investors through a private placement, the company said.

The company said the equity raising will help fund its US$15 million Way Linggo gold and silver project in Sumatra and finance exploration programs in Indonesia.

The deal, which is subject to regulatory approvals and approval by Meekatharra shareholders, would also see MM Gold repay loans totaling about A$5.8 million to Meekatharra, the company said.

Way Linggo is forecast by Meekatharra to produce up to 25,000 ounces of gold and 500,000 ounces of silver annually.

Production is scheduled to start early next year, it said.

MM Gold's other interests include the Muarawahua project in northeast Kalimantan, Indonesia, which lies directly along the strike of the linear trend defining the Trans Borneo gold belt, Meekatharra said.

MM Gold has a strategic alliance with Canadian mining group Teck Corp to identify and jointly apply for Contracts of Work in Indonesia, Meekatharra said.