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| Mt Kare in PNG. Photo source: Mining Journal |
Indochine Mining Ltd has announced plans to raise up to A$26 million (US$24.5 million) to fund the on-going development of its flagship Mt Kare gold project in Papua New Guinea.
The Australian-listed company said the funds would be raised through the placement of new shares and an accelerated two for five non-renounceable entitlement offer.
The entitlement offer, for institutional and retail investors, will aim to raise a combined A$24.6 million. Indochine said it would raise an additional A$1.6 million through a share placement to institutional shareholders.
The entitlement offer and share placement will be offered to investors at A$0.07/share. Indochine, which entered a trading halt prior to the announcement, was last trading at A$0.073/share.
Indochine said its major shareholders had already indicated support for the raising.
The funds will be used to further develop Mt Kare, including building an adit for the completion of underground drilling.
It will also progress the feasibility and environmental studies and finalise a landowner investigation report.
Indochine said it was targeting 1Moz at 10g/t gold with annual production of 150,000-200,000oz of gold commencing in 2015.
Source: Mining Journal