23/12/2010 - 08:38

Indo raises $5.4m, plans more

23/12/2010 - 08:38

Bookmark

Save articles for future reference.

West Perth-based Indo Mines has raised $5.4 million through a placement to private Chinese company Rockcheck Steel Beijing Co Ltd, to help fund development of its iron project in Indonesia.

Indo raises $5.4m, plans more

West Perth-based Indo Mines has raised $5.4 million through a placement to private Chinese company Rockcheck Steel Beijing Co Ltd, to help fund development of its iron project in Indonesia.

The placement, priced at 27 cents per share, will see Rockcheck become one of Indo's largest shareholders with a 10 per cent stake.

The company has also announced plans to raise a further $2.7 million through a placement of 10 million shares to existing shareholders.

Rockcheck is one of the largest privately owned iron and steel producers in China, with the capacity to make 5 million tonnes of iron annually.

Indo managing director Martin Hacon described the Rockcheck placement as a "significant milestone in the growth and development of the company".

"To bring a strategic investor of the quality of Rockcheck at this stage in the Company's development is a clear indication of a potential customer's view of the robustness of the Jogjakarta Iron Project." Mr Harcon goes on to say.

"Rockcheck's knowledge of iron concentrate products and their application to modern iron making processes will be a great asset to the Company as we look to further develop the resource potential."

The company said the placement to Rockcheck is not tied to any product off-take arrangements from the Jogjakarta Iron Project, however discussions about future arrangements are anticipated.

Indo aims to commence production of iron concentrate from its 70 per cent owned Jogjakarta project in the first half of 2011, targeting production of up to 250,000 tonnes.

 

 

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options