Adavale in Kalimantan coal mines JV

Australian exploration firm Adavale Resources Limited announced Wednesday that as part of its expansion into coal exploration in Indonesia, the company, through its wholly owned subsidiary Adavale Nusantara Resources (ANR), has signed joint venture agreements on 8 concessions totaling 24,400 ha.

The concessions are located in historic and well known coal producing areas in East and South Kalimantan with very good logistics, the company said.

The ongoing program of project identification followed by the application of rigid assessment criteria has led to the company securing the assets via formal agreement to cover the next stage of selective acquisition, it said.

The agreements are structured to grant ANR a minimum exclusive period to carry out geological surveys and further due diligence. Upon satisfactory completion of this stage, the agreements establish the parameters and grant ANR the right to acquire a majority shareholding in the company that owns the concession subject to negotiation of final terms, it added.

Exploration is due to commence immediately.(romel)