Prospects for Mt Kare mine collapse

INDOCHINE COLLAPSES

INDOCHINE Mining has appointed voluntary administrators after being unable to secure funding for its Mt Kare project in Papua New Guinea. 
The company had been in discussions over a strategic funding agreement for some time, but on Friday the remaining interested party withdrew its funding offer.

As a result, the board of Indochine appointed Martin Jones, Darren Weaver and Benjamin Johnson of Ferrier Hodgson as joint and several administrators.


“The company’s board is disappointed that despite its best efforts, a funding agreement for the Mt Kare project could not be concluded,” Indochine said.

“The directors will continue to work with the company’s administrators to help them achieve the best outcome for all of the company’s stakeholders.”

PCF Capital Group had been engaged over a deal on Mt Kare, while Indochine was also progressing plans to list on London’s AIM.
Indochine shares were suspended from trading on March 17 after the company failed to lodge its half-year accounts.

The company had cash of $A413,000 at the end of December and raised $500,000 in February.
However, it has a $3.75 million loan due at the end of next month.
Indochine had been aggressively cutting costs, going from a burn rate of more than $1.2 million a month in the middle of last year to less than $250,000.

The Mt Kare project, only 15km from Barrick Gold’s massive Porgera mine, has resources of 2.1 million ounces of gold and 18.4Moz silver.

A previous owner of Mt Kare also went into administration in 2008.
Indochine shares will remain suspended.

2 Comments

Filed under Exploration, Mine construction, Papua New Guinea

2 responses to “Prospects for Mt Kare mine collapse

  1. Reporter

    Indochine out

    The end of the line has arrived for the lads at the kaleidoscopically colourful, mining minnow, Indochine, with the appointment of Ferrier Hodgson as administrators.

    According to the one page ASX release, the trigger was the withdrawal of funding for the Mt Kare gold mine in Papua New Guinea by an “interested party”, which has sent the whole thing belly-up.

    The minnow has had an interesting history.

    Its early leadership team included David Evans and Jeremy Snaith – the dynamic duo enshrined in Melbourne Mining Club folklore as the ‘Bananas in Pyjamas’ following a certain Etihad flight in 2007.

    The boys, who were working for Jupiter Mines at the time, were arrested after alleged inappropriate antics on a flight to Abu Dhabi while on business for the mining explorer.

    The pair claimed they were innocent of charges of sexual harassment, intoxication and offensive behaviour.

    According to evidence presented to the court, Evans allegedly removed his clothing, exposing himself during the flight.

    Both received suspended sentences although Snaith got to spend 25 days in Al Wathba prison.

    Soon after, they both left to head Indochine.

    Indochine’s creditors meeting might also provide some entertainment.

    The company previously had a dispute with a Cambodian company associated with Lone Wolf biker, Brian Blackman, who was jailed for cocaine smuggling some years back.

    Smart money

    Investors may not have been impressed with their investment in Indochine, but its 2010 float was a great little performer for stockbroker Gerard Farley – brother of former Indochine director, Gavan Farley.

    His share shop, Farley’s Empire Securities, nabbed $15 million in fees from Indochine’s IPO. Not bad when you consider the float only raised $115 million.

  2. indochine mining was parked up by .png country manager geroge n.by working with outsite landowners picked in the street in port moresby .millions of indochine mining company wasted.,,,,why cant there sack this fijian?

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