Archipelago raises funds to finance plant acquisition for N. Sulawesi gold project

UK miner Archipleago Resources announced on Wednesday it had placed 6,666,700 shares with private and institutional investors to raise ?2 million.

The funds raised, according to the company, will be used as working capital by the company, including the purchase of additional plant and equipment from Barrick?s El Tambo Project in Chile to be used in its Toka Tindung gold project in North Sulawesi.

The company also earlier had placed 13.5 million of ordinary shares with its major shareholder to raise some ?4.2 million of funds, which would also be used to purcahse El Tambo plant and equipment.

The Company is currently completing due diligence studies as a necessary pre-requisite for project financing of its Toka Tindung Project. The project has a resource of 1.75M oz of gold equivalent of which at least 0.9M oz will initially be mineable by open pit. The project is targeted to produce at least 160,000 oz per annum for an initial 6 year mine life commencing in early 2006.(alex)