India Resources to raise $1.6m

Copper explorer India Resources has signed a placement agreement with Resource Capital Funds for the issue of up to 200 million shares to raise up to $1.6 million.

The issue will take the form of two tranches – the first consisting of about 73.8 million shares issued to RCF to raise $591,182, while the second tranche will consist of the remaining 126 million shares issued at a price of 0.8 cents per share to raise an additional $1 million.

India said the placement would be limited so that RCF’s voting power in the company doesn’t exceed 19.9 per cent.

“Shareholders will also be asked to consider the issue of a further 55 million shares to directors and management which will enable the full placement of 200 million shares to RCF to occur,” the company said in a statement.

Under the terms of the agreement, RCF has picked up the right to nominate a non-executive director of the company, providing it holds a 15 per cent or more interest in the company.

India said the funds raised from the placement would be used to pursue a mining lease for its Aravalli project and for working capital costs.

India shares last traded at 0.7 cents per share at 1:30pm.