INDOCHINE Mining has confirmed it has been approached by potential investors seeking to enter into a joint venture at its 2.5 million ounce gold equivalent Mt Kare project in Papua New Guinea.

In its quarterly announcement, the company said the groups were seeking to fund the project into production, linked to a cornerstone placement, though it noted negotiations were inconclusive at present.

“Initially, while discussions are underway, work on site has been reduced, until it becomes clearer that a joint venture will eventuate or the company will continue to sole fund the project,” the company said.

“Indochine took a decision to raise less funds than previously advised, to retain sufficient equity capacity to allow this investment to occur.”

The company completed a capital raising of A$3.4 million through the placement of 38.3 million shares at a premium of 9 cents each earlier in the year, down from the A$15 million it had previously planned to raise.

The placement was supported by some of the company’s largest shareholders and new investors, with funds from the raising to be used in continuing to progress the Mt Kare project as the company draws closer towards a final investment decision.

In addition, a number of PNG landowner groups also participated in the placement, with the shares to be quoted on the Port Moresby Stock Exchange.

The company is currently focused on advancing the development drive for bulk sampling, resource extension drilling as well as feasibility studies which will culminate into a mining lease application.

Indochine Mining has also recently appointed former head of Asia Pacific Natural Resources at JP Morgan and Morgan Stanley Hugh Thomas as company chairman, with outgoing chairman Ian Ross stepping down on 17 April.

Mining Engineer Craig Dawson and former chief executive of Climax Mining’s Didipio project Robert Thomson have also been appointed to the board, with Dr Michael Leggo also stepping down.