Austindo Rights Issue Raises A$9.5 million
Thursday, January 4 2001 - 04:30 AM WIB
Australian publicly listed mining company Austindo Resources Corporation NL announced on January 3, 2001 it has allotted 172,650,575 ordinary new shares following the successful conclusion of its rights issue announced on 8 November 2000.
As a result of the issue the Company has raised A$9.5 million before costs, being A$1.0 million greater than the minimum that the Company anticipated raising through the issue.
The issue was partly underwritten by ABN AMRO Morgans Corporate Limited who successfully introduced 545 new shareholders to the Company who subscribed A$3.0 million of the total amount raised.
In addition the Directors are pleased that 203 existing shareholders took advantage of the opportunity to top up to a shareholding of 10,000 shares.
The Directors also acknowledge the continuing support of the Austindo Group of Indonesia, as well as the Lion Selection Group of Australia, both of whom subscribed for their full entitlements, thus contributing significantly to the success of the issue.
The funds raised will primarily be used to advance exploration and development of the Cibaliung Project in Banten Province, Java, where the Company has been drilling an epithermal gold vein system since March 2000. The Company believes that the drilling results, which have been reported to date, are encouraging. In addition, some of the funds may be applied to project generation efforts and if successful, to the acquisition of a new project or projects to expand the asset base of the Company. While no specific opportunity has been identified at this stage, the Company intends to maintain its focus on gold exploration in Indonesia.
With the success of the issue the Company is well positioned to capitalize on opportunities in Indonesia where its key strengths lie and geological prospectivity remains attractive.
Austindo Resources focuses on primary gold exploration in Indonesia. It was formed in 1983 and now has a strategic relationship with the Austindo Group of Indonesia, which also has responsibility for its management and is the largest single shareholder of Austindo resources with a 42.47% interest.
Austindo holds a 63% joint venture interest in the Cibaliung gold project; a high-grade epithermal gold vein system located 150 kilometres southwest of Jakarta in West Java, Indonesia. The Company also holds an 85% interest in PT. Eastara Melawi Mineral ("EMM"), a 4th generation Contract of Work in West Kalimantan where it has been exploring for primary gold at Saran.(alex)