Tag Archives: Mt Kare

Mt Kare mine developer denies liquidation

Above: Royal Papua New Guinea Constabulary parade at Mt Kare. Photo: Nigel Nawara

Above: Royal Papua New Guinea Constabulary parade at Mt Kare. Photo: Nigel Nawara

Leo Wafiwa | PNG Loop

The directors of Summit Development Limited (SDL), the developer of Mt Kare gold project have advised all stakeholders that the company is not in liquidation as per “some rumours’’.

Director of Summit Development Limited, George Niumataiwalu, today said the parent company of SDL, Indochine Mining Limited (IDC) was placed into voluntary administration by the directors of IDC. Therefore the company appointed Darren Weaver, Ben Johnson and Martin Jones as Joint and Several Administrators pursuant to section 436A of the Corporations Act 2001.

“It is important to note that this appointment only relates to IDC and not its subsidiaries.

“Voluntary administration (in the Australian context) is a procedure where the directors appoint an external administration whose role is to work with the directors to develop and implement a financial re-organisation solution for the benefit of all stakeholders,” the Fijian director said.

He explained that the ultimate aim of a voluntary administration is to achieve an outcome that results in a better return to stakeholders than would otherwise have been achieved in a winding up.

“The appointment of voluntary administrators does not necessarily mean that the company is going into liquidation. The board and management of IDC have been, and will continue, in conjunction with the administrators, to seek to secure the necessary funding to provide for the long term, viability of Mt Kare.

“IDC remains committed to turning Mt Kare into a profitable, long life operation.”

Mr Niumataiwalu said that the decision to place the company into voluntary administration did not enforce any action upon Summit, a PNG subsidiary of IDC and they would, for the most part, continue business as usual except that the administrators would direct the affairs of the parent company.

Mr Niumataiwalu added that as to the Mt Kare project, the administrators had been in contact with the Mineral Resources Authority (MRA) in preparing for a restructure of the project, to maximise returns to all creditors and preserve its future value for landowners and creditors alike.

Indochine was placed into a voluntary administration in late March this year after it failed to secure sufficient funding for its Mt Kare project. The funding failure arose when unnamed interested parties to the project withdrew their funding offers.

It was reported earlier that Indochine had cash of A$413, 000 (about K900,000) at the end of December 2015 and had raised $500, 000 (K 1.4 million) in February. However, the company also has a $3.75 million (K10 million) loan which is due at the end of next month.

In an attempt to build sufficient funds, the company had aggressively cut costs, going from a burn rate of more than $1.2 million (K3.3 million) a month in the middle of last year to less than $250, 000 (K680, 000) as reported by MiningNews.com.

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Purum lays claim to Mt Kare mine

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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.

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Government blindly pursuing a failed model of development

Even the United Nations has warned more mining activity in PNG will NOT improve the lives of ordinary people – but Byron Chan and the O’Neill government don’t care. Instead they are rushing ahead with five new major mines. So who will take the profits? A small elite of politicians, lawyers and bureaucrats in PNG and the global mining companies – and unfortunately they are the ones who seem to be running the whole show…

More projects ahead

Gorethy Kenneth | Post Courier

PAPUA New Guinea expects to see about five mining development projects with a combined capital investment expected to exceed $US 10 billion or over K25 billion within the next decade.

The country’s 22-year old mining legislation and its policies will be revised so it can accommodate those projects, Mining Minister Byron Chan has announced.

Speaking in Sydney at the Mining and Petroleum Conference, Mr Chan also said the most significant initiative of the Government and the Mining Ministry is the development and implementation of several key mining policies and the subsequent revision of the current mining legislation.

He said PNG currently has 12 mining operations approved under special mining lease or mining lease tenements which have advanced to production or are at the development stages.

Within the next decade alone, we expect to witness the development of the following projects: Frieda copper, Wafi/Golpu copper, Yandera copper molybdenium, Mt Kare gold and a host of other alluvial mining projects

“These may include known mineral sands, nickel, coal and gold, silver and copper deposits. “I can report that progress is being made on the finalisation of the policy development, with the revisions of the mining act and regulations to follow.

“Working groups, comprising state and industry representatives, are now refining the policy settings and moving towards settlement of key issues and final drafting,” Mr Chan said.

“The sustainable mining policy is completed. “The geothermal policy, subject to the reservations already expressed, is also completed.

“It remains this Governments’ intention, to present the remaining policies for cabinet approval, and this legislation, to parliament mid next year.

“The Prime Minister has already given his assurance to industry and potential investors in the mining sector of PNG that policy settings will be progressive, based on best practice and allow compromise between competing interests,” he told the conference.

“They will build upon the template of the success of the current legislation, by providing the right mix of incentives and practicality to ensure a balanced regulatory regime to underpin the next generation of mineral investment in PNG,” he said.

“Finally, the most significant initiative of Government is the development and implementation of several key mining policies and subsequent revision of current mining legislation,” he said.

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Indochine makes breakthrough at Mt Kare in PNG

indochine-logging-drill-core

INDOCHINE logging drill core at Mt Kare in Papua New Guinea. The company signed a “groundbreaking” land agreement with local landholders this week, ahead of a recapitalisation of the company, according to insiders. Photo: Indochine Mining

Global Mining Observer

ASX-listed Indochine Mining is set to announce a financial recapitalisation of the company before the end of the year, Global Mining Observer has learned, after securing a breakthrough land deal with local tribes this week at its Mt Kare gold project in Papua New Guinea.

In a ceremony marked by “singsing” and “pig killing”, Indochine ended a 30-year land ownership dispute with local tribes on Tuesday. The news is seen internally as a “groundbreaking” moment in securing the future of Mt Kare, a bonanza grade gold asset in the politically volatile world of Papua New Guinea.

In conjunction with an equity raising, the company is working on a debt-to-equity swap with its secured creditor, according to sources involved, pumping money into the company, removing its debt overhang and kickstarting mine construction.

Indochine announced a boardroom overhaul in July, thought to have had the backing of underground mine contractor Brian Rodan, the company’s largest shareholder.

Valued at A$23m ($20m), or A$1.9c per share, the market appears to be pricing the company for liquidation, but in response to questions this week, interim chairman and restructure specialist Dermott McVeigh said he is “extremely confident that we’ll be here in not just 18 months, but that we will develop this project.”

The company has had expressions of interest for the full acquisition of the asset, according to McVeigh, but Indochine is “exactly the vehicle” to develop Mt Kare, he said. “The main reason I say that is because of the approach the company has taken to our relationship with landowners. On the ground in PNG, it makes an enormous difference.”

Mt Kare sits along trend from Barrick Gold’s giant Porgera mine, yielding 17m gold ounces since opening in 1990. The mine produced 482,000 ounces last year, but Barrick recently downgraded its mine life from 13 to 9 years and is trying to offload the asset, according to sources.

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Indochine share price tumbles after Mt Kare landowners declare their opposition

The share price of Australian mining company Indochine Mining has tumbled since landowners from its flagship Mt Kare project declared their opposition to the company on this blog two weeks ago: Mt Kare landowners call on government to cancel exploration licence.

Landowners say studies done by Indochine do not accurately provide for the cultural and traditional land owners of Mt Kare and they have asked the government to not to renew the company’s exploration licences

graph showing share price fall

IDC share value has tumbled since landowners voiced their opposition

The Indochine share price has dropped over 20% from 3.4 cents in the days before the story was published to just 2.7 cents today. Even more dramatic, shares in the company have lost almost 30% of their value from their August high of 3.8 cents one week before the story broke.

graph showing share price over 12 months

Current Indochine share values are a far cry from the heady highs of March. Since then the shares have crashed, loosing more than 65% of their 7.7 cent value.

Indochine Mining says it is engaged in the exploration and development of gold, silver, and copper mineral properties in Papua New Guinea and Cambodia. Its flagship property is the Mt Kare gold/silver project. The Australian Stock Exchange website says the company is based in Sydney, Australia and its two key executives between them earn over $700,000 a year.

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Mt Kare landowners call on govt to cancel exploration licence

kappa man

Mt-Kare-in-Papua-New-Guinea

Mt Kare exploration zones

The previous results of the Indochine/Summit Land owner study does not accurately provide the cultural and traditional land owners of Mt Kare.

We the Incorporated Land Groups of our Mt Kare land area EL1093 have requested MRA and the PNG Government to cease any license renewal to this Indochine/Summit circus, and do not authorise any current PNG Government/PM to consent these 2 companies to our EL1093.

The majority of the IDC board has recently resigned, IDC is being managed by an Accountant, who have moved IDC offices to Perth.

The ASX IDC share price is being manipulated and still is only gathering capital to feed its management.

Mt Kare ILGs have irrevocably dismissed any leases or authorisation to IDC/Summit.

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