Indiana Resources Successfully Raise $3.8M to Accelerate Exploration

18 October 2023 13:45

Indiana Resources (ASX:IDA) has successfully raised $3,828,050 through a placement to new and existing sophisticated investors in Australia and London, issuing 76,561,000 fully paid ordinary shares at $0.05 per share.

The Company has earmarked the capital for several key purposes: advancing rare earth element (REE) and gold exploration in South Australia, pursuing annulment and enforcement actions in response to the $110 million+ award from the International Centre for Settlement of Investment Disputes (ICSID) against Tanzania, and funding arbitration efforts in the shareholder dispute with Loricatus.

Leadership Changes

Amid the capital raising effort, the Company also announced the appointment of Ms Maja McGuire as a New Non-Executive Director to strengthen its legal experience and capacity.

Ms. McGuire’s appointment to Indiana Resources brings 15 years of valuable experience in providing strategic, corporate, and compliance counsel to publicly listed companies. This addition to the Board enhances the Company’s capabilities, particularly in supporting ongoing annulment and enforcement efforts against Tanzania and in arbitration with Loricatus.

Her diverse background includes roles as a non-executive chair (ASX:TG1), non-executive director (ASX:KNI; NSX:OLX; LTR Pharma Ltd; Stormeur Ltd), general counsel, and company secretary (ASX:AVR; ASX:AJX), as well as experience at a top-tier private practice with Clayton Utz.

Indiana is pleased to introduce Mathew Perrot as their Exploration Manager, leveraging his extensive experience in diverse commodities and mineralisation styles. Mr. Perrot will spearhead the Company’s exploration initiatives for REEs and gold in the Gawler Craton of South Australia. His most recent position was in senior management at Pursuit Minerals Ltd (ASX:PUR).

Placement Details

The Placement included the issue of 76,561,000 fully paid ordinary shares to new and existing sophisticated investors (including Director participation) in Australia and London, at an issue price of $0.05 per share.

The Directors subscribed for up to 2,800,000 shares in the Placement.

The Gawler Craton

Indiana’s landholding in the Gawler Craton spans 5,713 square kilometres, strategically situated between the gold-rich centres of Tunkillia, boasting a 965,000-ounce gold resource, and Tarcoola, with a 15,800-ounce gold resource.

While historically focused on gold, Indiana is now advancing plans for a targeted REE drilling program, capitalising on its prime location within this region, known for its gold potential but also presenting promising REE opportunities.

The recently acquired funds will expedite these exploration endeavours, positioning Indiana for significant value creation in the months ahead through the enforcement of the award against Tanzania and ongoing exploration efforts.

Comments From Executive Chair

Indiana Resources Executive Chair Bronwyn Barnes commented on the successful capital raising and new appointments.

“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,” he said.

“At Indiana’s core is a large-scale and highly valuable landholding in the Gawler Craton. 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. As a result, 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. 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.”

“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.”

IDA’s Australian Stock Exchange-listed share price is currently selling at $0.055 (1:30 pm UTC+ 8 hours).

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