Rajawali becomes majority shareholder at Indo Mines

By Peni Pedriawan

Australia-listed mining firm lndo Mines Limited announced on Monday that it has entered into a binding subscription agreement to complete a A$50 million placement by the Rajawali Group.

Pursuant to the Agreement, subject to Indo Mines shareholder approval, the Rajawali Group will increase its holding in Indo Mines through the issue of 250 million shares each at $0.20 per share taking their stake in the Company to 57.12%.

Rajawali Group is owned by Indonesian tycoon Peter Sondakh, who has a number of mines operating in Indonesia as well as infrastructure and plantation projects.

?The significant cash injection from the Rajawali Group provides funding to assist with the staged implementation of the 2 million tonne per annum iron concentrate facility, ongoing studies into the requirements for pig iron production, completion of financing due diligence and working capital,? Indo Mines said. Indo Mines has iron sands mine in Kulonprogo, Jogjakarta.

?This significant injection of funds by a strong and well-respected Indonesian company demonstrates the support and commitment to achieving the Company?s vision in establishing an Indonesian Steel industry based upon the vast Indonesian iron sand resources. The Board of Indo Mines is delighted by Rajawali?s increased participation in the Company which will enhance the prospects for? the Company in taking the Jogjakarta Iron Project forward,? it added.

Fund raised will be used to facilitate the phased implementation of the Jogjakarta iron project and to complete project finance due diligence.

The company said that Rajawali Group?s increased participation will assist the with ongoing regional support for the iron concentrate and pig iron projects; securing appropriate project financing and acquiring additional iron sands assets in the future to help grow the overall business.

Editing by Dadan Wijaksana