Australian-backed and Mongolia-focused
minerals explorer and developer Xanadu Mines Ltd. closed its Initial Public
Offer (IPO) oversubscribed and expects to list on the Australian Securities
Exchange on December 21. Through its IPO, Sydney-based Xanadu sought to raise
AUD21 million at 60c a share and the offer received a significant level of
support from a broad cross section of local and international investors.

Due to strong demand, Xanadu’s Board of
Directors has elected to issue a further 5 million shares to accommodate
oversubscriptions, taking the total amount of funds raised to AUD24 million.
Apart from drilling, the additional AUD3 million raised will be used to
accelerate the acquisition and consolidation of coal licenses in the Galshar
Basin and to step up exploration in the South East Gobi for both coal and
copper gold. Post IPO, Xanadu will be in a strong financial position to pursue
an aggressive exploration program in 2011 for coal and copper gold.