Austindo to raise up to $1.7 million for Cibaliung gold project

Australian-based gold explorer Austindo Resources Corporation NL said Wednesday it had resolved to proceed with a placement of up to 52.5 million shares at 3.2 cents per share to raise additional working capital of $1.7 million to complete its Bankable Feasibility Study (BFS) in Cibaliung Gold Project in Banten Province.

Austindo said the placement would be made to its major shareholders, PT Austindo Nusantara Jaya (ANJ) and associates.

ANJ and associates, which currently hold 47.9 percent of the issued capital of Austindo, would subscribe for up to 33.0 million shares ($1,056,000), Austindo said in a statement to the Australian Stock Exchange.

?The placement will be completed following shareholder approval. A general meeting to consider this proposal is scheduled to be held on 30 September 2003,? said Austindo.

Austindo has 75 percent interest in Cibaliung gold project. The company has previously confirmed that it is proceeding with a BFS on the Cibaliung project. It is anticipated that the BFS will be completed in the first half of 2004.

Canadian-based International Antam Resources, a subsidiary of JSX-listed state miner PT Aneka Tambang has the remaining 25 percent stake in the project. (robert)