Indochine finds cash for Mt Kare

INDOCHINE Mining says a fundraiser for its Mt Kare gold project in Papua New Guinea will secure $A15 million, subject to a further $3-5 million equity raising within the next seven days.
Indochine finds cash for Mt Kare Indochine finds cash for Mt Kare Indochine finds cash for Mt Kare Indochine finds cash for Mt Kare Indochine finds cash for Mt Kare

The funding is the result of a placement of 241 million shares at 9c per share aimed at raising up to $20 million to accelerate the project.

Indochine says the effort will allow it to achieve the key milestone of achieving a decision to mine, which will in turn enable development financing discussions.

Following the recent completion of a landowner investigation study, the company expects underground development at the site to advance more quickly to the mining stage, with an estimated capital expenditure of less than $100 million.

Efforts to secure financing for the project have addressed potential short and long-term debt funding options, in conjunction with share placements to allow for ongoing exploration and development.

A decision to mine is planned to be achieved mid-year, followed by a mining lease application, with debt funding options considered to complete mine construction.

Last month, Indochine confirmed that it would aim to increase the development work targeting Mt Kare's high-grade zones.

Initial horizontal geotechnical and hydrological drilling was completed on the adit portal in December, with drillholes reinforced and grouted for roof support within the initial 25m of oxidised rock.

Further development of both the adit and portal is planned for the current quarter.

The company says prior expenditure at the project totals $60 million, including 365 holes drilled.

Resources at the site stand at 43 million tonnes at 1.5gpt gold for 2.1 million ounces of gold and 18Moz of silver.

The deposit lies 15km southwest of Barrick Gold's massive Porgera mine.

Shares in Indochine were last trading 17.6% higher at 8c.

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