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Access1 Sells Gold Assets to Focus on Broadband

[May 22] Multimedia services provider Access1 has raised AUS$3.25 million (US$1.95 million) in a spin off of its gold assets to focus on broadband service delivery.

The Australian Stock Exchange-listed company has poured its gold assets into Phoenix Mining, and signals to the market that Access1 is concentrating its long-term multimedia strategy, according to the company.

Access1 uses satellite-based IP technology to provide broadband delivery of multimedia services including high speed Internet and full-screen TV quality channels directly to PCs across Australia.

"This spin-off emphasises the focus of this company on delivering broadband services across Australia while raising an additional AUS$3.25 million for Access1," said Access1's managing director Tony Brennan. "We are now completing one of our initial objectives by spinning off the gold assets into Phoenix Mining, an important milestone for both companies," he said.

Phoenix Mining is a separately listed company due to commence trading on the ASX on May 26. The company recently raised AUS$4 million (US$2.4 million) by offering 20 million shares (with a free option attached) exclusively to Access1 shareholders.

"By successfully spinning off the gold assets, we have provided an additional injection of funds, taking our cash holdings to over AUS$10.5 million (US$6.3 million)", said Brennan. A further AUS$10.3 million is due by 30th June if the listed Access1 options (ACCOB) are exercised.

In March, Access1 announced an alliance with Seven Network Pay Television station, C7, to deliver pay TV coverage direct to PCs of the Sydney 2000 Olympic Games , and carry all the C7's sports programming on an ongoing basis.