10/07/2008 - 10:58

Monarch, India Resources in talks

10/07/2008 - 10:58

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India Resources Ltd has revealed it is in ongoing talks with the Michael Kiernan-led Monarch Gold Mining Company Ltd over a $3.5 million outstanding loan.

Monarch, India Resources in talks

India Resources Ltd has revealed it is in ongoing talks with the Michael Kiernan-led Monarch Gold Mining Company Ltd over a $3.5 million outstanding loan.

India Resources, where Mr Kiernan used to hold the deputy chairman position before standing down last month, said it had no current information to suggest that Monarch will not meet its repayment obligations.

Earlier this week, Monarch managing director Michael Kiernan released details of a $30 million package to save the embattled company which was teetering on the brink of administration.

Monarch's woes were triggered when it was forced to suspend operations last month at its Davyhurst gold mine due to continued underpeformance.

It has also been reported that Monarch owes shareholder Territory Resources Ltd $18 million.

Meanwhile, India Resources said it was able to explain why its share price was in mode downward trajectory over the past few weeks.

Earlier this year, India reached a high of around 17c while its current share price last traded at 5.6c in early afternoon trade.

"In recent weeks the [India's] share price has fallen substantially. [India] is not aware of any change in
outlook that might account for that fall," the company said.

The company has a copper operation in India which produced 3622 tonnes of copper concentrate and 872t of copper metal since mining started.

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