India Raising $20 Million to Double Copper Production
Tuesday, October 9th, 2007
Diversified minerals explorer India Resources will raise up to $20 million through a share rights issue and additional capital raising, to drive development of its Surda copper project in India and fund further exploration to leverage Indiaâ€™s resources potential.
Through a share rights issue, IRL plans to raise $16.4 million through the offer of 81.8 million shares at 20 cents per share. The shares will be made available to eligible shareholders on the basis of one new share with a free attaching option for every share held at the record date of 17th October.
The company is also embarking on an additional capital raising program for $3.6 million through a share placement to sophisticated investors by issuing up to 18 million shares at 20 cents per share with free attaching options.
India Resources Chairman Michael Kiernan said the funds would be used for the Surda copper project in eastern India into production next month, following the raising of first ore from the mine in September and fund an ultimate doubling of production.
â€œWe are now on the cusp of full time mining at Surda, with trial mining expected to commence in early November, two months ahead of schedule,â€ Mr Kiernan said.
â€œRefurbishment work on the mine and the associated Mosaboni concentrator is nearly complete, with a team of more than 200 people on the ground making great strides, and all key plant and infrastructure in place or on order,â€ Mr Kiernan said.
IRL, in alliance with Hindustan Copper Limited, has a current annual production target of 4,500 tonnes of copper concentrate.
â€œIt is the Boardâ€™s goal to double production over the 12 months and move towards profitability for India Resourcesâ€™ shareholders.â€
Mr Kiernan added India Resources was also continuing a strategic exploration program on a range of commodities throughout India, to capitalise on the largely undeveloped potential in the country.
The Company has achieved recent exploration success at its Aravalli project area, and has been granted a new in the Bundelkhand Diamond project. Further exploration is underway on these projects.
He said the company aimed to leverage quality projects, leading edge mining techniques, and access to one of the worldâ€™s largest markets.
â€œWe are bringing cost effective Australian mining techniques and know how to India to deliver a lower cost product to the awakening tigerâ€™s economy,â€ Mr Kiernan said.
For further information visit: www.indiaresources.com.au