3D Resources to acquire S. Kalimantan coal mine

Australia-listed firm 3D Resources Ltd announced Thursday that it has executed an MoU to acquire 100% stake in PT Aries It Indo which owns a coal mining project in Southern Kalimantan.

PT Aries owns Exploration and Operation Production Permits covering 575.9ha and 153ha respectively in South Kalimantan with well established infrastructure including haul road and jetty, the company said.

Existing drill data within the area suggests potential for developing 2 seams with 3:1 up to 7:1 stripping ratios with coal CV of +6,000kcal/kg thermal coal.

3D Resources may acquire PT Aries for an initial payment of $2 million after due diligence completion and subsequent payments equating to a total sum of $1.20 per ton of JORC resource with further payments to be made annually subject to resource upgrades.

The acquisition is subject to technical and legal due diligence including a preliminary drilling campaign aimed at confirming extensive existing drill data, expected to be completed by Q1 2012, the company added.(alex)