INDOCHINE Mining on Wednesday announced an update on its equity capital raising of up to A$20 million (K43.6 million) to fast track the development of Mt Kare project.
The fundraising was with offers of A$15 million (K32 million) to date and subject to raising a further A$3 million (K6 million) to A$5 million (K11 million) of equity within the next seven days to complete the transaction.
The total equity raising was through a placement of up to 241 million shares to new and existing investors at A$0.09 (K0.1965) per share, as noted in a market release.
Indochine was seeking adequate funding to pave the way to a decision to mine and start discussions on how to finance the project.
Indochine’s flagship asset is the Mt Kare gold-silver project between Enga and Southern Highlands.
A major increase in quality of the resource was recently announced with two substantial high grade zones averaging 5-20g/t gold, with intersections of more than 100g/t gold.
The current focus was to extend these high grade zones as they allowed for a rapid, low-cost underground mining option at significantly reduced capital costs than announced in the company’s 2012 pre-feasibility study.
Mt Kare is situated 15km from adjoining Porgera gold mine.