The financing consists of 8 million units priced at 65 each. A unit comprises one share and half a warrant. Each full warrant allows the holder to buy an additional share at 70 during the first year and at 90 during the second.
Carpenter Pacific Resources has the right to buy 2.2 million units in accordance with a 1999 agreement that saw Madison buy a 25% stake in the Australian-based junior’s Mt. Kare projects.
Madison’s drill program will focus on the Realgar, Black South, C-9 Deep Feed and Middle Maratani zones, as well as the Pinuni Creek and Orosa targets.
Canaccord Capital is handling the offering in exchange for a commission of 6% and the right to buy up to 807,000 shares at 70 during the first year and at 90 during the second.
Madison holds a 90% interest in Mt. Kare. The remainder is held by Kare-Puga Development, made up of Mt. Kare landowners. The deposit has a resource of about 20.4 million tonnes grading 5.6 grams gold and 28.7 grams silver per tonne. A resource update and results from metallurgical tests are expected in the coming months.
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