Medusa Mining Limited: Proposed Dividend and Amendments to Constitution

By world on September 2nd, 2010 309 views

COMO, WESTERN AUSTRALIA, Sep 01 (MARKET WIRE) —
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

Contacts:
Australia:
Medusa Mining Limited
Geoffrey Davis
Managing Director
+61 8 9367 0601

Medusa Mining Limited
Roy Daniel
Finance Director
+61 8 9367 0601
admin@medusamining.com.au
www.medusamining.com.au

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

Canada:
Nicholas Sayce
Investor Relations
+1 416 822 4404

-0-