The company has received $1.6m in cash and the purchaser has assumed all liabilities relating to the project with effect from 1 September being approximately $2.7m.
The purchaser is expected to pay Indo Mines a royalty for production in excess of 450,000 tonnes at the rate of $6/tonne, to a maximum of 850,000 tonnes (estimated at $2.4m).
Indo Mines is an Indonesian focused mining and metals company.
Indo Mines holds a Contract of Works to mine and process iron sands throughout Indonesia and operates a small, high calorific coal mine in South Kalimantan.
It is currently focusing its activities on its 70%-owned Jogjakarta Iron Project in southern Java where it has defined a 605 million tonne resource.
