Indo Mines secures $3m funds to develop S. Kalimantan coal project

ASX-listed mining firm Indo Mines Limited announced on Thursday that the Company has completed a placement of 12 million ordinary shares at $0.25 each, predominately to institutional investors, to raise $3 million before costs.

The company engaged the StoneBridge Group to act as lead manager for the placement.

?Funds raised from the placement will be used to accelerate the development of the Bangun Buana Persada Kalimantan (BBPK) Coal Project in South Kalimantan which is targeting to commence operations by April 2010, and to provide general working capital,? it said.

The company has entered into a conditional agreement to acquire Fireside Resources Ltd, which holds the rights to the BBPK Coal Project, as well as a number of other resource assets in Indonesia .

A bankable feasibility study was recently completed by a major mining group on the BBPK Project and Fireside has negotiated the acquisition of the study which will assist in the development and operation of the mine. Fireside is required to achieve a minimum monthly output of 25,000 tonnes of nominal 6,500 kcal (ADB) thermal coal by May 2010.

As part of the Fireside transaction, the Board of Indo Mines will be strengthened with the appointment of Derek Fisher and Paul Kopejtka, both of whom bring to Indo Mines additional technical expertise and have a proven track record in funding large scale resource projects through the development phase, it added. (denny)