Austindo raises fund through placement to develop of Banten gold project

Australian Stock Exchange-listed miner Austindo Resources Corporation NL announced on Wednesday that Austock Corporate Finance Limited has undertaken a placement of 447.9 million ordinary fully paid shares in the company at 3.6 cents per share to raise A$16.1 million for the development of the Cibaliung Gold Project and the company's exploration activities in Indonesia.

The company said with the completion of the equity funding and the US$26.0 million project finance to be provided by ANZ Investment Bank, the company would be in a position to fund the development of the Cibaliung Gold Project located in Banten province.

The company expects to commence construction at Cibaliung when final permits required by local regulatory authorities have been granted. First gold production expected to be achieved in 2006.

The Cibaliung Project is being developed by PT Cibaliung Sumberdaya - a joint venture company in which Austindo was entitled to an 83.76% interest as at 31 December 2004 and PT Antam Tbk held 16.24% interest.

Key development and production parameters for the Cibaliung Gold Project are: Mine life of 6 years with a production rate of 220,000 tonnes per annum with recovery of gold and silver by a conventional CIL processing plant; Mining will be by conventional underground cut and fill stoping with decline access; Annual production of aproximately 70,000 ozs gold equivalent; Average life of mine cash operating costs of less than US$200/oz. .

The company also has several other exploration tenements in Indonesia. (alex)