Jun 6, 2011

Indo Mines to raise A$10.2 million

Australia-listed company Indo Mines has undertaken a share placement in order to raise up to A$10.2 million for expediting the development of the commercial trial iron sands concentrate plant in Yogjakarta.
The company, as quoted by proactiveinvestors.com, will place 18.6 million shares at $0.55 each with institutional and sophisticated investors to raise the funds.
Private Chinese steel maker, Rockcheck Steel, has agreed to acquire a parcel of 16 million Indo Mines shares in an off-market arrangement at the placement price of $0.55, increasing Rockcheck’s stake in Indo Mines to 18%.
The capital raising will strengthen the company’s cash position and enable the business to transition into early production at the Jogjakarta Iron Project.
Remaining funds from the raising will go towards the assessment of new project opportunities including the Halmahera Iron Project.
“It is particularly pleasing that the company’s strategic holder, leading privately-owned Chinese steel maker Rockcheck Steel Co, has increased its shareholding in the company demonstrating its strong support of our business strategy to become the leading supplier of raw materials to the rapidly growing Indonesian steel and metals industry," said Martin Hacon, Managing Director of Indo Mines.
Iron sand is a type of sand with heavy concentrations of iron (magnetite and hematite) that contains other minerals such as titanium oxide and vanadium oxide.

Disclosure: No position at the stock mentioned above.  

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