Indo Mines completes stake sale in Mangkok project

ASX-listed, Indonesia-focused miner Indo Mines Limited has finalized an agreement under which it sold its interest in the Mangkok coal project in South Kalimantan to an Indonesian private company.

In a statement, Indo Mines said that with the operational difficulties it had encountered at Mangkok, it has decided to divest of its interest to enable the company to be more focused on adding value to its core iron sands assets.

Under the sale agreement, the buyer pays Indo Mines US$1.6 million in cash and assumes all its debt relating to the project, which stood at US$2.7 million per September 1.

The purchaser will also pay to the Company a royalty for production in excess of 450,000 tons at the rate of US$6/ton, to a maximum of 850,000 tons (estimated at US$2.4 million). (nur)