Dragon Mining to redeem all $5.8 million of convertibles on Oct. 8

By Susanna Moon

Chicago, July 8 - Dragon Mining Ltd. said it plans to redeem all of its 5,339,479 outstanding convertible notes with a face value of $5.8 million on Oct. 8.

The company noted that it purchased an additional 1,468,180 notes at an average price of $1.05 in July.

As of June 30, Dragon Mining had about $28 million in cash, bullion and receivables, and debt of €1 million, which is repayable in December.

"This is a tremendous result for the company and another important milestone," executive chairman Peter Cordin said in a press release.

"In early 2006, the company had net debt of approximately $19.3 million, a gold hedge book that was out of the money by $35.1 million and one operating mine.

"The company now has a healthy cash balance, three operating mines and a 2010 production target of 70,000 ounces of gold. In addition, the company continues to generate strong operating margins with the strength in the gold price and the weakening of the euro and Swedish krona," he added.

The issuer is a gold mining company based in Perth, Australia.

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