The Russian tycoon's investment vehicle holds strategic investments worldwide, and a large stake in Australia's Mount Gibson Iron Limited.
Medusa said in a news release that in addition to the newly-acquired shares, "7,000,000 unlisted options exercisable by 1 February 2009 at a price of A$1.60 [US$1.35] will also be issued to Gallagher subject to shareholder approval at a meeting in August 2007."
Medusa said the funds raised will be used for repaying deferred vendor debt of A$5 million (US$4.2 mln) and funding a future porphyry copper drilling program, among other things.
Usmanov is also the main shareholder in the unlisted Metalloinvest Group, Russia's leading iron ore producer, with 39% of total concentrate, pellet and hot briquette production. The group owns the country's fifth largest steelmaking plant.
