MEDIA RELEASE 20
May 2007
INDIA RESOURCES $10 M IPO HEAVILY OVERSUBSCRIBED
India Resources Limited
(IRL) has closed its Initial Public Offer heavily oversubscribed, having raised
$11 million to develop its suite of resources opportunities in India.
The offer opened on
April 23 when IRL sought to raise $10 million with an oversubscription facility
of $1 million. The heavy demand for the offer resulted in a complete take up of
the IPO and the full oversubscription facility.
Through the IPO, IRL
offered 50 million shares at an issue price of $0.20 each, with attached listed
options. IRL proposes to list on the ASX in late May.
IRL chairman Michael
Kiernan said the strong demand for IRL shares from both institutional and
retail shareholders was recognition of the quality of the company’s
assets and opportunities for growth in India.
“We welcome new
shareholders on board, and look
forward to driving the projects in India to the next phase,” Mr
Kiernan said.
“We believe that
investors have a great opportunity within the Indian resources industry, which
is not as developed to the extent as Australia’s
and South Africa’s,
primarily due to the lack of exploration and cost-effective mining techniques.
“India has world class ore bodies
and we look forward to growing our local relationships to mine resources using
Australian cost effective mining techniques,” Mr Kiernan said.
India Resources primary
project is the previously operated Surda copper mine in the Singhbhum copper
belt in India.
In alliance with Hindustan Copper Limited (a
Government of India enterprise), IRL has an annual production target of 4,500
tonnes of copper concentrate.
Mr Kiernan said IRL
primary focus now was to continue moving toward re-opening of the Surda mine
over the coming year. The mine closed in 2003 and for the six years prior
produced 1,473,000 tonnes at an average grade of 0.9% copper. He said IRL would
also investigate development of a diverse range of other resource opportunities
in India.
“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.
“The key indicators
show India
is expected to achieve GDP growth of at least 9% in the coming year” 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),”
Mr Kiernan said.
Carmichael Capital
Markets Pty Limited was the Lead Manager to the Offer.
For
further information, please contact:
Michael
Kiernan Warrick Hazeldine
Chairman Purple Communications
Tel:
+61 (0) 8 9324 7002 Tel:
+61 (0)8 9485 1254
Mob: 0417 944 616
About India
Resources
The company is
headquartered in Perth, Western Australia with the primary objective
to maximize shareholder wealth by capital growth and dividend through the discovery
of economic mineral deposits and the development of profitable mining
operations.
The Company’s
portfolio of assets comprises:
Hindustan Copper Limited
- Surda Mine
The Company has the
benefit of an alliance with Hindustan Copper Limited (HCL - a Government of
India enterprise) with the initial focus on identifying existing operations and
areas where large-scale mineralisation has been proven. HCL is the sole
integrated producer of primary copper in India
and is listed on the Mumbai, Delhi, Kolkata and Madras exchanges.
IRL, in alliance with
HCL, plans to re-open and operate the Surda Mine with an initial objective of
delivering annual production of 4,500 tonnes of copper concentrate. The HCL
Surda Mine closed in January 2003
and for the six years prior produced a total of 1,473,000 tonnes at an average
grade of 0.9% copper.
Hindustan Copper Limited
– Exploration MOU
IRL has the benefit of a
Memorandum of Understanding (MOU) for general exploration on HCL’s
various leases including tenure around the Surda Mine, and around HCL’s
current operations at Malanjkhand and Khetri. IRL will undertake detailed
evaluation of exploration areas to be determined in consultation with HCL.
Aravalli Project
Through IRL’s
in-country consultants, the Company has acquired two Reconnaissance Permits in
Rajasthan (north western India).
The first permit is 50 kms North East of Udaipur with 1,900 square kms in area
and the second permit is 20 kms South East of Ajmer with 670 square kms in
area. The Aravalli Proterozoic metamorphic belt is prospective for copper,
lead, zinc as well as gold.
Coal
IRL is currently holding
discussions with Cook’s Construction Pty Ltd, Australia’s largest privately
owned earth moving and mining contracting company with extensive coal mining
experience, with a view to establishing a joint venture. It is intended that
any resulting joint venture entity would apply for rights to explore and
develop coal projects in India.
Diamonds
The Company’s
diamond initiative will focus on the Bhandara Diamond Project which consists of
seven granted Reconnaissance Permits in Orissa, as well as three Reconnaissance
Permit applications in Chhattisgarh, located in the region of several
kimberlite ore bodies. The projects will be acquired by IRL shortly, subject
only to some formalities to be completed by the current holders.
Visit: www.indiaresources.com.au
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