Gallagher, the investment company of one of the world"s richest men, Russian multi-billionaire Alisher Usmanov, has taken a 12.32% holding in Philippines-focused gold miner Medusa Mining.

Gallagher"s holding comes via the placement of 17.5 million fully paid shares at Aus$1.15 per share to raise Aus$20,125,000 before costs. In addition 7 million un-listed options exercisable by 1 February 2009 at a price of Aus$1.60 will be issued to Gallagher subject to shareholder approval at a meeting in August.

Gallagher holds strategic investments worldwide, including being a substantial shareholder in Mount Gibson Iron. Mr Usmanov is also principal shareholder in the unlisted Metalloinvest Group, which is Russia's largest iron ore producer with 39% of total concentrate, pellet and hot briquette production and the country's fifth largest steel producer, with two integrated steel operations.

Medusa will use the funds raised as early repayment of the deferred vendor debt of Aus$5 million which resulted from completion of the Philsaga transaction in December last year; to fund a porphyry copper drilling program focusing initially on the Lingig discovery; and to fund expanding exploration activities.

The Lingig porphyry copper discovery is to the east of the company's main tenement block. It was delineated as a result of an aid program between Filipino and Japanese geologists and technicians in 1972 to 1974 over eastern Mindanao. An initial 3000sqkm prospective area was located by geological and geochemical surveys and this was subjected to additional geological mapping and geochemistry. A smaller 170sqkm area was selected and subjected to detailed geological mapping and geochemistry followed by induced polarisation geophysical surveys.

Finalisation of tenements over the Lingig prospect is being prioritised by the company to enable drilling to start as soon as possible.