The Hindu Business Line : IRL mines for cash to fund India operations

Kolkata, July 17 India Resources Ltd (IRL), a company listed on the Australian Securities Exchange (ASX), has offered to issue shares to its shareholders primarily to raise funds to finance its mining activities in India.

IRL has invited its shareholders to buy its shares up to a limit of Australian $15,000 each at an issue price of 2 Australian cents a share irrespective of their current shareholding.

The issue would remain open till July 31. The issue price was a 7.8 per cent discount to the stock’s average closing price during 10 trading sessions immediately before the record date of July 3.

On Friday, the stock declined 5.26 per cent.

Meanwhile, two of the major shareholders – Crawley Investments Pty Ltd and Mr Laurance James Kiernan holding 3.4 per cent and 1 per cent, respectively – have opted not to participate in the fresh issue. The issued share capital of IRL before the offer comprised of 18,96,46,977 shares and 11,47,25,668 listed options.

The company also has on issue 4.70 crore unlisted options over ordinary shares. The top stakeholder in IRL is Territory Resources Ltd having a stake of 9.4 per cent.

In January, IRL made a private share placement of 12 million shares at 2.5 Australian cents each to raise Australian $3 lakh for additional working capital.

The company said in January that it also augmented its working capital facility with Axis Bank by Rs 9 crore or Australian $2.8 million as a term loan. This was done for capital requirement for its activity at Surda copper mine in Jharkhand, which it obtained for operation from Hindustan Copper, which buys the mineral at a fixed price.

IRL has entered or intends to enter several mining projects, including in base metals such as copper, lead and zinc, and also coal, gold and diamond.

At Surda, it reported consistent 300 tonnes of copper every month, which is above the operating cash flow break-even level.

It said Aravalli base metal project in Rajasthan is now a joint venture with Binani Zinc arm, RBG Minerals. For the diamond project its Indian partner is Vajra Diamond Mining, a private entity.

IRL has made several applications for iron and copper permit areas in various states.

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