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 a recent announcement to the Australian market, Indochine said it had completed a capital raising of A$3.4 million through the placement of 38.3 million shares at a premium of 9c each.

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.

“This investment by landowner groups marks a significant local vote of confidence in the Mt Kare project,” Indochine said.

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.

While Indochine initially expressed the possibility at securing $15 million, it said a turn of events had prompted it to raise less funds than initially advised.

In a sign which highlights Mt Kare’s underlying value, the company said during the raising it had been approached by parties expressing interest and entering into a JV on a project level, with the aim of funding the JV into production and to undertake a cornerstone placement in Indochine.

“These discussions are ongoing and at present negotiations are inconclusive, and therefore, Indochine took a decision to raise less funds than previously advised, to retain sufficient equity capacity to allow this investment to occur,” Indochine said.

Indochine is aiming to make a decision to mine in mid-2014.

The company’s’ shares were last trading at 6.8c before the share market closed for the Easter weekend.