20/12/2011 - 12:01

Indo Mines receives $13m Indonesian investment

20/12/2011 - 12:01

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The funds will be directed at Indo Mines' Jogjakarta pig iron project.

Perth-based Indo Mines has entered into an agreement with Indonesian investment company the Rajawali group which includes a $13.2 million share placement.

Under the agreement, the Rajawali group will acquire a 19.9 per cent holding in the company through the issue of 57.3 million shares at 23 cents each.

Indo Mines currently owns a 70 per cent interest in the Jogjakarta pig iron project in Indonesia.

Indo Mines said in a statement the cash injection would be used to assist in completion construction and commissioning of its demonstration plant at Karawuni, testwork required for development of its iron sands project and completion of project finance due diligence.

Once shareholder approval is granted and the transaction completed, the Rajawali group will appoint of non-executive director to Indo Mines’ board.

Indo Mines managing director and CEO Martin Hacon said he was delighted one of the most respected businesses in Indonesia had chosen to invest in the company.

“This investment demonstrates their confidence in our business strategy to be the leading supplier of iron concentrate and pig iron to the rapidly growing Indonesian steel industry,” he said.

“Their extensive business portfolio provides a tremendous opportunity to enhance the development of the Jogjakarta iron project and future iron and steel developments in Indonesia.”

Indo Mines shares were steady at 23 cents at midday WST today.

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