The deal with Resource Capital Fund has made it into the Indian Newspapers. Not much notice taken in Australia though and not much interest on the market either with just $21 worth of sales sold.
Resource Capital Fund makes significant investment in India Resources Limited
By ET Bureau | 20 Aug, 2014, 06.28PM IST
KOLKATA: India Resources Limited (IRL) has signed a placement agreement with Resource Capital Fund VI for issuing nearly 200 million shares at a price of $0.008 to raise up to $1.6 million. The funds raised are expected to be used to pursue the mining lease for the company's Aravalli zinc-lead project in India and to meet its general working capital needs.
Based in Australia, IRL is the only foreign mine operator in India in the area of base metals and has been operating Hindustan Copper's Surda copper mine and Mosaboni Concentrator plant since November 2007.
The Aravalli project is potentially a world class zinc-lead deposit, located inside a globally significant zinc-lead province. "Through RCF's commitment to become a cornerstone investor in IRL, it will provide unique strategic development expertise to IRL to support the company's interests and in particular, the Aravalli project," IRL managing director Arvind Misra said in a statement.
The agreement is conditional upon IRL also entering into a binding term sheet with Noble Resources International Australia for the issue of 90 million shares at $0.008 per share to extinguish the loan payable to Noble of $0.72 million. Incidentally, RCF pioneered the concept of mining-focused private equity funds and has supported 123 mining companies involving projects in 42 countries and 29 commodities. Resource Capital Fund VI is the sixth of the Funds and is currently being invested with committed capital of $2.04 billion. IRL's Aravalli project lies in close proximity to zinc major Hindustan Zinc
