Announcement to the Australian Securities Exchange and Toronto Stock Exchange



    US$60M private placement of common shares and units

    VANCOUVER, Sept. 28 /CNW/ - CGA Mining Limited (TSX: CGA; ASX: CGX)
("CGA", "the Company") is pleased to announce that it has engaged Haywood
Securities Inc ("Haywood") to act as agent for a US$60 million private
placement offering of common shares and units ("the Offering"). The proceeds,
in combination with a US$65 million senior debt facility being arranged by BNP
Paribas (as announced September 10, 2007), are proposed to be utilised to fund
the construction of the Company's Masbate Gold Mine in the Philippines.
    Haywood will also have an over-allotment option entitling them to sell
additional common shares for further gross proceeds of US$5 million,
exercisable two days prior to the closing of the Offering.
    The common shares will be issued at a price of C$0.83 per share. Each
unit will consist of one promissory note with a par value of US$1,000
("Notes") and 250 transferable share purchase warrants. The Notes will pay a
12% coupon per annum, paid semi-annually until the earlier of the maturity
date (five years) or redemption by the Company and will include terms standard
for debt securities of this nature. The Notes shall be redeemable at anytime
after the 24 month anniversary of the issue date. Each transferable share
purchase warrant will be exercisable into one CGA common share for a period of
thirty-six months from the date of closing and have an exercise price of
C$1.03 per share.
    The Company will have the right to accelerate the expiry date of the
warrants if, following twenty-four months after the issue date, the volume
weighted average share price of CGA's ordinary shares equals or exceeds 160%
of the exercise price for 20 consecutive trading days. CGA may accelerate the
expiry date of the warrants to a 30-day period following delivery of a notice
of acceleration.
    The private placement is subject to regulatory approval. The Offering is
expected to close on or about October 30, 2007, subject to shareholder
approval for the issuance of the common shares and warrants, as required.

    Masbate Gold Mine
    The Masbate Gold Mine is an advanced stage gold development opportunity
with NI 43-101 compliant indicated resources of 3.0m ounces, low grade
indicated resources of 0.4m ounces and inferred resources of 1.8m ounces. CGA
has agreed all key terms for a fixed price construction contract with Leighton
Contractors Philippines Inc, a wholly owned subsidiary of Leighton Holdings
Limited ("Leighton). Leighton is Australia's largest project development and
construction group, with current work in progress of over A$6.8 billion in the
mining and resource sector. The construction period is anticipated to last 15
months.
    All key permits for construction of the Masbate Gold Mine are now in
place including the Mineral Production Sharing Agreement (MPSA - initial term
of 25 years and extendable) and the Mineral Processing Permit.

    About CGA
    CGA is a development company focused on the construction the Masbate Gold
Project in the Philippines, with commercial production forecast for the first
quarter 2009. The Company also has the 51% owned Mkushi advanced stage copper
development project in Zambia (in the prefeasibility stage) and the 51% owned
Segilola gold exploration project in Nigeria, considered to be the most
advanced gold exploration project in the country.





For further information:

For further information: Enquiries: Australian Contact, President & CEO
- Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email:
mcarrick@cgamining.com; US Contact, Chairman - Mark Savage, Tel: (505) 344
2822, Fax: (505) 344 2922, Email: marksavage@comcast.net

Organization Profile

CGA Mining Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890