Austindo Resources to raise $3 million by placement

ASX-listed miner Austindo Resources Corp. announced Wednesday that it had decided to proceed with the placement of up to 70 million shares at 4.3 cents to raise A$ 3 million to fund the company through pre-implementation phase of its 83.76 percent-owned Cibaliung gold project in Banten province.

The company said the placement would be made to the company?s major shareholders, which had confirmed their readiness to take the placement to maintain their interst in the company.

The major shareholders that had committed to take the placement including PT.Austindo Nusantara Jaya (41.64%), Lion Selection Group (11.88%) and Diemar & Associates Pty. Ltd. (5.86%)

Austindo completed bankable feasibility study on Cibaliung project last month. Austindo did not give further detail about the results of the BFS, but earlier pre-feasibility study result suggested mine life of 6 years with increased production rate of 220,000 tonnes per year with recovery of gold and silver by conventional gravity; annual production of 70,000 ounces of gold equivalent, with average operating cash cost of US$ 200 per ounce; and investment of US$ 30 million

Cibaliung project has resources of 1.8 million tons at 9.6 g/t Au and 80 g/t Ag within two epithermal high grade gold-silver shoots containing 554,500 oz gold and 4.62 million oz silver.(alex)