Indo gains 20% before trading halt

Shares in iron ore explorer Indo Mines climbed more than 20 per cent before entering a trading halt pending an announcement about a potential acquisition of new exploration and mining interests.

Indo Mines said it has been in negotiations since October last year with regards to the acquistion of additional mineral interests in Indonesia to compliment the company's Jogjakarta Pig Iron Project in which Indo holds a 70 per cent stake.

In response to a query from the Australian Securities Exchange about the company's increased share price and trading volume last friday, Indo noted recent improvement in iron ore spot prices, favourable market sentiment for the sector and the strengthening of both pig iron and scrap metal prices as possible factors.

Indo shares were up 6.5 cents, or 21.67 per cent, to 36.5 cents.