Diversified minerals explorer India Resources Ltd plans to raise up to $20 million to drive development of its Surda copper project in India and fund further exploration to leverage India's resources potential.
Through a share rights issue, IRL plans to raise $16.4 million through the offer of 81.8 million shares
at 20 cents per share. The shares will be made available to eligible shareholders on the basis of one
new share with a free attaching option for every share held at the record date of 17thOctober.
The company is also embarking on an additional capital raising program for $3.6 million through a
share placement to sophisticated investors by issuing up to 18 million shares at 20 cents per share
with free attaching options.
India Resources Chairman Michael Kiernan said the funds would be used for the Surda copper
project in eastern India into production next month, following the raising of first ore from the mine in
September and fund an ultimate doubling of production.
"We are now on the cusp of full time mining at Surda, with trial mining expected to commence in early
November, two months ahead of schedule," Mr Kiernan said.
"Refurbishment work on the mine and the associated Mosaboni concentrator is nearly complete, with
a team of more than 200 people on the ground making great strides, and all key plant and
infrastructure in place or on order," Mr Kiernan said.
IRL, in alliance with Hindustan Copper Limited, has a current annual production target of 4,500 tonnes
of copper concentrate.
"It is the Board's goal to double production over the 12 months and move towards profitability for India
Resources' shareholders."
Mr Kiernan added India Resources was also continuing a strategic exploration program on a range of
commodities throughout India, to capitalise on the largely undeveloped potential in the country.
The Company has achieved recent exploration success at its Aravalli project area, and has been
granted a new in the Bundelkhand Diamond project. Further exploration is underway on these
projects.
He said the company aimed to leverage quality projects, leading edge mining techniques, and access
to one of the world's largest markets.
"We are bringing cost effective Australian mining techniques and know how to India to deliver a lower
cost product to the awakening tiger's economy," Mr Kiernan said.
