Rajawali acquires 19.9% stake in Indo Mines

The widely diversified Rajawali Group has agreed to provide US$13.2 million in equity participation in Indo Mines Limited as part of a strategic partnership agreement signed in Jakarta last week.

Under the agreement, Rajawali Group will acquire a 19.9% stake in Indo Mines through the purchases of 57.3 million shares each at $0.23 per share.

The significant cash injection from the Rajawali Group provides cornerstone funding to the Indo Mines to assist in completing construction and commissioning of the demonstration plant at Karawuni, additional testwork required for development of the iron sands project and completion of project finance due diligence.

The Rajawali Group is an investment holding company with core operations in hospitality, plantations, mining and minerals, including coal, infrastructure and transportation. Its combined portfolio is estimated to be in excess of US$2 billion.

Indo Mines Managing Director and CEO, Martin Hacon, said ?I am delighted that the Rajawali Group, one of the most respected businesses in Indonesia, has chosen to invest in Indo Mines.

This investment demonstrates their confidence in our business strategy to be the leading supplier of iron concentrate and pig iron to the rapidly growing Indonesian steel industry, he said.

?Their extensive business portfolio provides a tremendous opportunity to enhance the development of the Jogjakarta iron project and future iron and steel developments in Indonesia,? he added (romel)