News: Indochine Mining secures $1.15M in additional funding

Indochine Mining (ASX:IDC) has secured additional funding of $1.15 million from its existing secured lender, bringing the size of the Varied Facility up to about $3.05 million.

In addition, the financier has extended repayment of the facility to 31 December 2014 subject to monthly reviews and reduced the annual interest rate to 25% per annum.

This follows the recent board and management changes that included the appointment of restructuring specialist Dermott McVeigh as its interim chairman.

The company is also encouraged by discussions that are also progressing with existing shareholder and potential investors to seek new equity funding that will allow the company development of its Mt Kare gold project in Papua New Guinea.

Indochine has reviewed previous JORC Resource estimates for Mt Kare and has not identified any reason to question their validity.

The company will now look to ensure that, where appropriate, previous and future resource statements reflect the requirements of the JORC 2012 Code.

Mt Kare has a Resource of 2.1 million ounces.

The company plans to commence development of an exploration adit as soon as funding is available from the prospective capital raising.

This will allow for underground drilling of higher grade zones in order to accelerate the feasibility study of these areas.   

Indochine’s directors are also considering whether to relocate its Head Office from Sydney to Perth where its major contracting service providers are located.

This could also assist its future fund raising efforts by building its profile in Western Australia’s mining industry.