Indo Mines will raise Aus $4.8 million through a placement of 10 million ordinary shares to continue development of its Yogyakarta iron sands project in Indonesia and to provide working capital.

The placement has been primarily made to institutional investors, including CIMB Standard South East Asian Strategic Assets Fund, Asian Lion Ltd, two European based institutional investors and other institutional investor clients of Argonaut Securities.

Indo Mines has completed the final JORC Code compliant resource statements for the Yogyakarta project located at Kulon Progo on the south coast of Yogyakarta Province, Central Java.

Based on 929 holes for a total of 14,468 metres of air core drilling, Mackay & Schnellmann Pty reported a JORC Code compliant global resource at Kulon Progo of 605 million tonnes of magnetite-bearing sediment grading 10.8% Fe for the 22km long by up to 1.8 km wide deposit.

This equates to an equivalent contained iron of 65 million tonnes of Fe. This global resource includes a JORC Code compliant mineral resource of 273 million tonnes of magnetite-rich near surface sand grading 14.2% Fe (at a cut-off of 9% Fe) which is estimated to an average 6 metre depth from surface which is the proposed initial mining area.

Almost 92% of this tonnage is in the measured/indicated category. www.indomines.com.au

News sourced from International Mining Project News - www.im-mining.com