Michael Kiernan-chaired mining company India Resources Ltd has announced plans to raise $10 million through a public offer to evaluate opportunities for copper mining in the region.
Michael Kiernan-chaired mining company India Resources Ltd has announced plans to raise $10 million through a public offer to evaluate opportunities for copper mining in the region.
The comapny will offer 50 million shares at 20 cents each to raise the money, as well as offering one free option with every four shares subscribed for under the offer, exerciseable at 20 cents each.
It aims to restart the historic Surda copper mine in Jharkhand in cooperation with government enterprise Hindustan Copper Ltd, which India Resources is looking to re-start at a rate of 4,500 tonnes of copper concentrate per annum.
The mine was closed in 2003.
The company raised $1.6 million in a share offer last year to establish working capital.
The offer is expected to close on May 18.
The full text of a company announcement is pasted below
India Resources Limited (IRL) is set to list on the ASX in May after lodging with ASIC a Prospectus to raise A$10 million to evaluate and develop a suite of resources opportunities in India.
The Company is offering 50 million Shares at an issue price of $0.20 each to raise $10 million. In addition, investors will receive 1 free attaching listed option for every 4 shares subscribed for, exercisable at $0.20 each on or before 31 December 2009. The offer is expected to close on the 18th May 2007.
IRL was incorporated in 2006 and raised $1.6 million via a share offer in October 2006 for the purpose of accumulating a suite of resource assets in India prior to seeking a listing on the ASX.
IRL's main project is the previously operated Surda Copper Mine and Mosaboni Concentrator of the Singhbhum Copper Belt in Jharkhand. In alliance with Hindustan Copper Limited (a Government of India enterprise), as Monarch Gold Mining Limited's special purpose vehicle, IRL plans to re-open and operate the Surda Copper Mine with an annual production target of 4,500 tonnes of copper concentrate. IRL has allocated $900,000 for the evaluation of the Surda mine over the coming year. The Surda Mine closed in January 2003 and for the six years prior produced 1,473,000 tonnes at an average grade of 0.9% copper.
Hindustan Copper Limited is the sole integrated producer of primary copper in India and is listed on the Mumbai, Delhi, Kolkata and Madras exchanges.
IRL Chairman Michael Kiernan said there is a growing view within India that the Australian mining industry can deliver the expertise to drive efficient extraction of resources to meet domestic demand. "IRL is positioning itself to participate in this expected growth in the Indian minerals sector," Mr Kiernan said.
"We believe the opportunity for investors is the fact that the Indian resources industry has not developed to the extent as Australia's and South Africa's, primarily due to the lack of exploration and cost-effective mining techniques. The geological and metallurgical history of India is similar to that of mineral rich Australia and South Africa.
"India has world class ore bodies and we look forward to developing relationships with established players to mine these resources using modern mining techniques."
"The Company's alliance with Hindustan Copper Limited is an indication of the Indian resource industry's willingness to embrace Australian exploration and mining expertise."
According to the Government of India's Central Statistical Organization, production at Indian factories, utilities and mines grew 11% during the first 11 months of the fiscal year that ended March 31 2007, compared with 8.1% for the same period a year earlier.
"The key indicators show India is expected to achieve GDP growth of at least 9% in the coming year based on the strength of the mining sector and the overall economy," Mr Kiernan said.
"While attention has focused on China's spectacular economic progress in recent years, India has quietly surged to be the world's fourth-largest economy (after the United States, China and Japan).
"The reception IRL and its advisors have received in India has been encouraging."
Carmichael Capital Markets Pty Limited is the Lead Manager to the Offer.
Development Team
Former Consolidated Minerals Limited (ASX:CSM) General Manager Exploration Eoin Rothery is the Managing Director of IRL focusing on evaluating and developing projects on behalf of shareholders.
The Board and team of executives formed to advance IRL's development plans include Directors with a strong mix of commercial, legal, mining, marketing and in-country expertise to deliver on the Indian opportunities for the benefit of all shareholders.
