Dragon Mining is free from debt after redemption of all convertibles

By Devika Patel

Knoxville, Tenn., Oct. 1 - Dragon Mining Ltd. said that, following the redemption of all of its convertible notes and the early repayment of a debt facility, the company is debt free and unhedged.

Of the 23,645,289 convertibles issued in February 2006, Dragon Mining repurchased 18,322,810 convertibles on market, the company redeemed 5,249,479 convertibles five months early on Sept. 30 and investors converted 73,000 of the notes into 438,000 shares.

Following the redemption, Dragon Mining has about $24 million in cash, bullion and gold concentrate receivables.

"The company is in a strong financial position, has three profitable gold mines and is on track to meet the 2010 production target of 70,000 ounces of gold," executive chairman Peter Cordin stated. "The directors continue to strive to generate shareholder value by growing the business.

"This is being achieved by aggressive drilling at all mines with the objective of increasing mine life to greater than five years and advancing exploration on the exciting Kuusamo Gold Project. In addition, the company is actively monitoring acquisition opportunities that fit within our corporate strategy," Cordin added.

Dragon is a gold mining company based in Perth, Australia.

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