By Robb M. Stewart
MELBOURNE--Asset manager BlackRock Inc. and specialist resource
fund Baker Steel have increased their holdings in Indochine Mining
Ltd. (IDC.AU) after the gold explorer raised funds for the
development of a project in Papua New Guinea.
BlackRock's stake in Indochine has climbed to 8.6% from less
than 5% following a share placement by the Sydney-based company,
while Baker Steel's holding rose to 10.2% from 8.4%, Indochine said
in a statement.
"This is a great vote of confidence in Mount Kare's potential,"
said Stephen Promnitz, Indochine's chief executive.
The company earlier this month said recent drill holes at the
Mount Kare project had obtained very high grade gold and silver
assays, supporting plans for a large open-cut mine that is aiming
for production of 125,000 to 150,000 ounces of gold and silver a
year.
A prefeasibility study for the project is expected to be
completed in August, with new drill results released every three to
four weeks, it said.
Mr. Promnitz said he believes the price of gold, while volatile,
has stabilized between US$1,550 and US$1,650 an ounce and will head
higher to about US$1,800/oz within 12 months.
Indochine last month raised A$8.25 million (US$8.1 million)
through the private placement of shares at 15 Australian cents
each, primarily with the company's largest institutional
shareholders.
Write to Robb M. Stewart at robb.stewart@wsj.com