Arc raises funds to step up gold exploration

ASX-listed mineral exploration firm Arc Exploration Limited announced Tuesday that it has raised A$1.195 million by way of a placement of shares.

The funds raised through the Placement will primarily be applied to advance the Company's Indonesian exploration strategy with detailed surface work at Trenggalek and Bima to identify targets for drilling programs planned for 2011, the company said.

The Company has three projects. Trenggalek in East Java, Bima in East Sumbawa, and a 20% interest in the Aisasjur project in West Papua pursuant to a Strategic Alliance with Anglo American.

Through Trenggalek (ARX 95%) the Company has secured a strategic position under the new Indonesian IUP tenement system in an emerging gold and gold-copper mineral province located along one of Indonesia's many fertile magmatic arcs.

In addition the Company holds a 95% joint venture interest in the Bima Exploration IUP in East Sumbawa where recent results have highlighted the potential to host a substantial near-surface bulk tonnage gold system with deeper porphyry copper-gold potential at Baku to the south of the tenement area. (giok)