Austindo to raise another A$2.6 million for Cibaliung gold project
Monday, July 4 2005 - 05:54 AM WIB
Austindo said it had secured an underwriting of the SPP in the amount of A$2,611,647 with Austock Corporate Finance Limited that may be terminated in certain circumstances.
?In the event that the Underwriting is terminated the Offer pursuant to the SPP would remain in good standing, however the Underwriter would not be required to subscribe for any shortfall,? Austindo said.
On 15 June, Austindo announced that it had resolved to raise A$16.1 million through the placement of 447.9 million shares at 3.6 cents for the Cibaliung Project and its exploration activities in Indonesia.
Austindo said with the completion of the placement referred to above and the SPP, together with the US$26 million project finance to be provided by ANZ Investment Bank, it would be in a position to fund the development of the gold project.
The Cibaliung Gold Project is being developed by PT Cibaliung Sumberdaya ? a joint venture company in which Austindo is entitled to an 83.76 percent interest and the state-owned diversified miner PT Antam Tbk holds a 16.24 percent interest.
The gold project is a high grade epithermal gold and silver and will operate for at least six years producing 70,000 ounces gold (equivalent) per annum based on current resources. First gold production expected to be achieved in 2006. (Robert)