MEDIA
RELEASE
9 October 2007
INDIA
RAISING $20 MILLION TO DOUBLE COPPER PRODUCTION
Diversified minerals explorer India Resources
(ASX:IRL) will raise up to $20 million through a share rights issue and
additional capital raising, 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
17th October.
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.
For further information, please
contact:
Eoin
Rothery
Warrick
Hazeldine
Managing
Director
Purple Communications
Tel: +61 (0) 8 9324
7009
Tel: +61 (0) 8 9485 1254
Mob: 0420 904
332
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.
IRL is applying Australian exploration
expertise and cost effective mining techniques to project in India, to
capitalise on country huge growth and market opportunities.
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 permits cover a combined total of more than square kilometers. The Aravalli
Proterozoic metamorphic belt is prospective for copper, lead, zinc as well as
gold. IRL has recently completed a reconnaissance drilling program with
positive results.
Coal
As has happened in China, India’s rapidly growing
economy is driving a surge in demand for power. IRL is currently seeking
suitable projects 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.
Visit: www.indiaresources.com.au
***
Issued
by
Purple
Communications
Level
3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph:
08 9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au