Indo Mines secures $4m debenture funding for C. Java pig iron project

ASX-listed firm Indo Mines Limited announced Tuesday that it has settled and received the US$4 million debenture funding with Anglo Pacific Group PLC to further development of its Jogjakarta Pig Iron project, Central Java.

?This funding will allow the Company to continue the Project?s development and increase its scale, with a view to delivering low cost pig iron into the readymade domestic market and expanding Asian market,? the company said.

The Debenture carries a coupon of 8% per annum, payable quarterly in arrears by either a royalty commencing on first production, initially at 2% and reducing to 1%, or by the issue of shares at a conversion price of A$0.50.

Anglo Pacific specialises in developing royalty flows through investments in strategic listed and unlisted mineral exploration and production opportunities.

Indo Mines is planning to mine 9 million tonnes per annum of iron sands from Jogjakarta mine to produce 1MTPA of pig iron.(alex)