A total of approximately $6 million, including the accelerated component of $5.6 million, has been raised from existing eligible shareholders. The funds raised will be deployed to commence construction of an underground adit which should allow Indochine to more cost effectively increase its high grade resource which currently stands at 466,000 ounces gold at 10 g/t Au, (within a larger 2.1 Moz gold JORC resource and 18 Moz silver). The adit will enable Indochine to seek to achieve its near term target of defining 1 million ounces of gold at 10 g/t Au.
The shortfall component under the Entitlement Offer was 266 million shares, or approximately $18.6 million. The Directors may, subject to the requirements of the Listing Rules and the Corporations Act and in accordance with the Offer Document, place the shortfall within the next three months at a price no less than $0.07, the issue price of new shares under the Entitlement Offer. The placement of the shortfall will be made to institutional, professional and sophisticated investors who are not required to be notified under Part 6D.2 of the Corporations Act. The Company is encouraged by a number of investors that have expressed an interest in the high grade Mt Kare gold project following active marketing of the Company's new development strategy.
Indochine's Chief Executive Officer, Mr Stephen Promnitz, commented: "In the current market, we are encouraged to have secured the continued support of our investors, particularly some of the larger funds on our register, that recognised the unlocked value in the high grade Mt Kare gold project. Our immediate focus is to develop this exploration adit so we can more cost effectively increase our high grade resource base. Work has commenced on the adit, and we hope to update shareholders shortly on progress."
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About Indochine Mining Limited
Indochine Mining Limited (ASX:IDC) is a gold-copper exploration and development company. In Cambodia, it has the largest mining property holding in a country that has had very limited modern exploration, and is within a region known for world-class gold and copper deposits.
In Papua New Guinea (PNG), also known for large gold and copper deposits, Indochine holds an option over a major gold resource at Mt Kare. In Laos, potential exploration areas are being evaluated.
Indochine Mining Limited