MINDENAO GOLD MINING (fka MDGM)

[maninfla]

Merged firm to invest in Zambo mine site

By Cai U. Ordinario, Researcher
Saturday, July 23, 2005

UPON completion of its merger with local firm Siennalyn Mining, US-based and locally listed Mindenao Gold Mining Corp. (MGM) together with Riverbank Corp., an American investment company, will be investing additional capital for a Zamboanga del Sur exploration project in the next quarter.

Nestor Buenaflor, MGM vice president, told The Manila Times that Mindenao, an independent corporation based in Blaine, Washington, with mining operations in Mindanao, will invest anywhere from $15 million to $50 million for the exploration from its internally generated funds.

He added that the Siennalyn merger is one of several mergers it is planning in the country. MGM, which will be the surviving entity in the merger, is looking at the possibility of acquiring mining companies in the country to further boost its shareholder value in the United States.

“We are hoping that shares would be bumped up with the merger once we find more gold content,” Buenaflor said.

The company’s shares in the US stock market is trading at $ 0.48 cents from its previous $850 a share before it completed a reverse merger with Las Vegas-based United Development International.

Besides gold, Buenaflor said, the company is also hoping to find copper and lead content in the mine site.

He said that the Siennalyn site, located in Sibugay, Zamboanga del Sur, has a total area of 4,600 hectares.

“Our plan is to bring in experts [to explore the site]. We are [presently] working out negotiations with geologists and mining engineers,” Buenaflor said.

An initial survey done by Placer Dome for Siennalyn in a 20-hectare part of the site indicated that there were 400,000 ounces of gold, estimated to be worth $160 million, which could be mined from the area.

“We expect to get higher gold contents considering that the 400,000 ounces to 600,000 ounces was surveyed from a 20-hectare portion of the site,” Buenaflor said.

http://www.manilatimes.net/national/2005/jul/23/yehey/business/20050723bus10.html

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