Austock Corporate Finance Limited has paid Aus$5.16 million for 344 million shares in Austindo Resources Corporation.

Austindo will used the money for working capital and costs, including holding costs, associated with the development of the Cibaliung Gold Project in Indonesia, in which Austindo has a 89.75% interest.

Earlier this month Austindo agreed to enter into non-binding indicative terms and conditions in respect of a Convertible Note Facility to raise US$20 million (with provision for oversubscriptions up to a further US$5 million) with South East Asian Strategic Assets Fund (SEASAF) and its advisor CIMB-Standard Strategic Advisors Pte Ltd of Singapore in cooperation with Austock Corporate Finance Limited.

Funds raised pursuant to this Facility will primarily be applied to the completion of the Cibaliung Gold Project.

The Cibaliung Gold Project is being developed by PT Cibaliung Sumberdaya - a joint venture company in which Austindo holds an 89.75% interest and PT Antam Tbk holds a 10.25% interest.

Cibaliung is located in Banten Province near the western tip of the island of Java, 150km South-west of Jakarta.

The Cibaliung gold project has a mine life of six years with a production rate of 220,000 tonnes per annum with recovery of gold and silver by a conventional CIL processing plant;

Mining will be by conventional underground cut and fill stoping with decline Access.

The annual production is expected to be approximately 70,000 ounces of gold equivalent.

Erection of the gold processing plant is approximately 80% complete and the SAG Mill installation has started with the bearing plates installed. Foundations for the crusher are also 80% complete.

Substantive construction work will resume when funding via the Convertible Note Facility becomes available.

In the meantime all major works on site are on hold in order to conserve cash while an appropriate mining plan is being developed in order to achieve access to the ore bodies at the earliest opportunity and conditions precedent in respect of the Convertible Note Facility are being satisfied.