Indiana raises $3.8m to accelerate rare earth, gold exploration in South Australia
Link copied to
Indiana Resources has received firm commitments to raise $3.8m via a placement at $0.05 per share to accelerate rare earths and gold exploration activities in the Gawler Craton of South Australia.
The company holds 5,713km2 in the region, with its tenements strategically located between the historic gold mining centres of Tunkillia (965,000 ounce gold resource) and Tarcoola (15,800 ounce gold resource).
While there’s a historical focus on gold, Indiana Resources (ASX:IDA) is progressing plans for a targeted Rare Earth Elements (REE) drilling program.
This placement was strongly supported by existing major shareholders of the company, including participation by the company’s directors who subscribed for a total of $140,000, subject to shareholder approval.
“At Indiana’s core is a large-scale and highly valuable landholding in the Gawler Craton,” executive chair Bronwyn Barnes said.
“Our wholly owned tenements have immense upside for our shareholders and will again become a major focus for the company as we ramp up our on- ground activities over the coming months.
“Directors strongly supported the placement, demonstrating the board’s commitment and support to the company’s current activities and belief in the strength of our ability to complete enforcement and the quality of our SA exploration portfolio.”
Funds raised from the placement will also be used for the annulment and enforcement activities following the US$110M+ International Centre for Settlement of Investment Disputes (ICSID) award against Tanzania.
In July, the ICSID ordered Tanzania to pay US$109.5m ($160m) for the unlawful expropriation of the Ntaka Hill nickel project (IDA ~62% ownership) in 2018.
Once considered investment-friendly, the east African nation of Tanzania stunned ASX resource plays in July 2017 with sweeping changes to its Mining Act.
As part of these changes, Indiana had its retention licence for its advanced Ntaka Hill nickel sulphide project cancelled by the Tanzanian government.
The multi-year litigation process paid off, with the company now pursuing enforcement activities to get Tanzania to pay up.
“Indiana is delighted to have secured this important capital injection which provides the business with the financial capacity to self-fund our share of enforcement activities for the significant Award against the United Republic of Tanzania, avoiding further drawdown on our existing litigation funding facilities,” Barnes said.
The proceeds will also be used in separate arbitration activities in the dispute between Ntaka Nickel Holdings shareholders Nachingwea UK – who Indiana has a majority 83.7% stake in – and Loricatus Resource Investments.
Indiana has also shaken up its board and management team, appointing Matthew Perrot as exploration manager to drive South Australian exploration and Maja McGuire as non-executive director to strengthening legal experience and capacity.
Perrot is a well credentialed geologist with extensive experience across multiple commodities and mineralisation styles, and most recently held a senior management role with Pursuit Minerals (ASX:PUR).
McGuire brings to the company a strong skill set and experience as a commercial/corporate lawyer, providing important bench strength to Indiana’s board to support the current annulment and enforcement activities against Tanzania and arbitration with Loricatus.
She has established a 15-year track record in providing strategic, corporate, and compliance advice to listed public companies and was previously non-executive chair with TechGen Metals (ASX:TG1), non-executive director for Kuniko (ASX:KNI), and was general counsel and company secretary for Anteris Technologies (ASX:AVR), and Alexium International (ASX:AJX).
“We have appointed Mat Perrot as our exploration manager to lead this new phase of work. Mat was previously the exploration manager with responsibility for Tanzania and supported the company as a key witness in the recent arbitration process,” Barnes said.
“Mat has recently returned from a field visit to South Australia and we will be updating shareholders on the recommencement of exploration in the Gawler Craton shortly.
“The appointment of Ms McGuire as a director delivers highly valuable legal experience as we look to resolve the ongoing matters with Tanzania and Loricatus respectively.
“Maja has an exceptional track record as an experienced director, and her appointment brings the board to a 50% diversity structure.”
This article was developed in collaboration with Indiana Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.