BRISBANE (Indonesia Today) – Indo Mines Ltd has entered into a binding subscription agreement to complete a $50 million placement to Peter Sondakh???s Rajawali Group.

Pursuant to the subscription, the Rajawali Group will increase its ownership through the issue of 250 million shares at $0.20 per share taking their stake to 57.12%.

The cash injection will assist the staged implementation of the 2 million tons per annum iron concentrate facility, ongoing studies into the requirements for pig iron production, completion of financing due diligence and working capital.

Indo Mines believed Rajawali Group will assist the company???s ongoing regional support for the iron concentrate and pig iron projects, securing appropriate project financing, and acquiring additional iron sands assets in the future.

Rajawali Group also will be granted to appoint a further two Non-Executive Directors, the right to participate in any new issue of shares for 5 years period, and the right to underwrite or sub-underwrite any new issue of securities on customary terms. (bintang@theindonesiatoday.com)

Further Reading: Rajawali Group & Indo Mines at Yosefardi.com