Plans are being finalised for the launch of a new regional newspaper in the midlands, with Bank of Ireland and several media players among the investors.

Advertisements are expected to be placed at the end of this week seeking staff for the Athlone-based paper, which will be edited by Mr Liam Horan.

The managing director is believed to be Ms Deirdre Hughes, formerly advertising manager with the Sunday Business Post.

A company called the Media Group, which consists of public relations executive Mr Conall O'Morain and businessman Mr Terry MacManus, have secured investment for the paper.

The accountancy firm Russell Brennan and Keane have also been involved in lining up local investors.

The initial fundraising will be in excess of €1 million, of which most will come from private investors and venture capital houses.

Bank of Ireland Venture Capital is also believed to be involved, although the details of the shareholdings are not being revealed at this stage. The project is not being backed by any large-scale media groups.

The project has been in preparation for some time and at an early stage it was known as Project Illinois. At this stage it is believed to be fully financed.

However, the recruitment of staff could take some time and the precise launch date is not clear. Local observers believe it is most likely to hit the streets some time in late August or early September, although the backers declined to comment yesterday.

When the paper enters the market, it will compete against the Westmeath Independent and to a lesser extent the Westmeath Examiner, both owned by the Nally family. Another paper, the Topic, also circulates in the area.

The Westmeath Independent is edited by the former news editor of the Star, Mr Dave O'Connell. It claims a weekly circulation of about 15,000 and will fiercely resist any attempt by the new paper to steal a slice of its circulation.

In earlier pitches to investors, the promoters stated that if the paper performed well there was a strong chance it would be bought out in three to five years by a large media group like Scottish Radio Holdings, by which stage it could be worth over €8 million.

The financial plans have not been disclosed yet, although an earlier draft suggested the paper could make operating profits by year four on a turnover of €1.2 million,

One of the biggest decisions facing the promoters will be which company is going to print the paper. Two major printing operations - the Kilkenny People and Meath Chronicle - are nearby.

The promoters believe Athlone is a suitable town for a new paper because of its future growth prospects. Already a major dormitory town for Dublin, the population is expected to increase strongly in the next few years.