Published: February 2, 2016 |

[Click image to enlarge]

Indo Mines will add an interesting asset to its portfolio after signing an agreement to acquire control of an Indonesian mining and oil services supplier.

Indo Mines will acquire a 51 percent stake in Sapex Oil Tools Limited which has been operating since 1994.

Sapex is known for its leading composite mats, downhole tools and location management business that services the mining and oil & gas industries in Indonesia.

The acquisition will cost Indo Mines US$3 million and be part funded from cash reserves and the remaining US$2 million through a 12 percent interest 3 year debt facility.

Indo Mines had around $10 million in cash reserves in September 2015.

Satex is a regional provider of one of the leading composite mat systems which will also be used at Indo Mines’ flagship Kulon Progo iron sands project.

The composite mat system is designed for use in remote and rugged terrain-access locations and Sapex has the rights to distribute the composite mat system within Indonesia.

The acquisition is expected to deliver cash flows from contracts held to deliver its services.

Largest shareholder of Indo Mines is the Rajawali Group, a large Indonesian group with diverse interests.

A definitive feasibility study for the iron plant is due in May 2016.

Source: (January 28, 2016) Proactive Investors

About Indo Mines
Indo Mines Limited is an Indonesian-focused mining and metals company committed to developing and unlocking the potential of iron sand mineral assets to establish itself as a low cost domestic iron manufacturer and becoming the supplier of choice to the growing Indonesian and Asian Steel and Metals Industry.

The Company’s major shareholders consist of the Rajawali Group, a large Indonesian group with diverse interests, and Rockcheck Steel Group Co., Ltd, one of China’s largest privately owned iron and steel producers.

To stop by Indo’s website, CLICK HERE

Be in-the-know when you’re on-the-go!