Austindo announces successful right issue to fund Banten gold project

Australian mining firm Austindo Resources Corporation NL announced on Tuesday it had successfully raised A$17,6 million from its rights issue which closed on 25 October 2007.

Together with the placement effected on 24 September 2007 the Company has raised gross proceeds of $19.9m, which is expected to be sufficient to substantially advance the company towards first gold production from the Cibaliung Gold Project in, Banten, the company said.

The funds from the recent Placement and this Rights Issue will be used for working capital purposes and costs associated with the ongoing development of the Cibaliung Gold Project a in which Austindo has an 89.75% interest A portion of these funds may also be applied to near mine exploration at Cibaliung to enhance the resource and reserve base, the company said.

Austindo said it would require further funding to complete the development of the Cibaliung Gold Project, produce positive cash flow and to fund further project and regional exploration. Following the success of the Rights Issue the Board will at an appropriate time in 2008 consider a further equity raising to complete its funding requirements.(alex)