03/09/2009 - 12:15

Indago to sell assets, raise capital

03/09/2009 - 12:15

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Subiaco-based Indago Resources plans to sell three of its projects and raise capital through a rights issue following an asset and operational review.

Subiaco-based Indago Resources plans to sell three of its projects and raise capital through a rights issue following an asset and operational review.

 

 

The announcement is below:

 

 

Indago Resources is pleased to provide the following update to the market concerning its corporate and operational activities.

Following the recent changes to the Indago board, the Company has initiated a widespread review of the business.

This assessment will see the spotlight focus on costs, in particular the rate of cash burn and administrative overheads.

The review will also entail an in-depth assessment of each Indago asset with a view to determining operational priorities and whether any of the company's project should be disposed of and, if so, how.

The Indago board will proceed with plans to sell three of the Company's projects - the Snowbird Project in Canada, the Mid Continent Nickel Project in the US and the West Georgetown Base Metals Project in Queensland. The market will be advised immediately a transaction is completed.

Indago director Peter Pynes said the review was aimed at improving returns for all shareholders.

"This is a deck-clearing exercise that will provide the platform for Indago's future direction and growth," Mr Pynes said. "The approach and the decisions that are taken will reflect the fact that the number one factor driving this Company will be shareholder return."

"The review will underpin the highly disciplined approach that will govern Indago's strategy. It will also show that the new board is about being pro-active and adding value for shareholders while maintaining firm control of costs."

As part of its push to reposition Indago for growth, the board will undertake a capital raising via a rights issue to ensure that all shareholders participate equally.

Mr Pynes said the board looked forward to advising shareholders of its progress on these fronts, including details of the capital raising and asset disposals.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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