Adavale secures $2.4m funds for Indonesia coal projects

ASX -listed junior exploration firm Adavale Resources Limited has secured approximately A$2.45 million funding via a partially underwritten entitlements issue and a convertible loan facility from Arthur Phillip Pty Ltd to identify research and conduct exploration in up to 13,000 Ha within the Tapan coal mine in West Sumatra .

?The entitlements issue is partially underwritten by Arthur Phillip Pty Ltd, up to $2,000,000, and the balance will be placed on a best endeavors? basis. Arthur Phillip will be paid a fee of 6% of the amount underwritten and also the amount of any shortfall actually placed,? the company said in statement.

The company intends to conduct further drilling within the Tapan project in order to prove up a larger resource and thereby provide the justification to start mining and invest in infrastructure.

However, given the acquisition of the Tapan project has not yet been completed, the company is also reviewing a number of other coal projects in Indonesia in both Sumatra and Kalimantan , it said.

The work currently being undertaken by the company?s geologists is to verify these projects in order to identify which project has the greatest prospect.

In December 2009, Adavale started joint ore reserves committee (JORC) program at its Tapan coal project. Seven coal seams have been identified within the exploitation area which provides an inferred coal resource at 15 million tons (Mt), the company said in release statement on Dec 22, 2009.

In October 2009, Adavale entered into an agreement with United Energy and Resources to acquire the rights to two thermal coal projects, respectively located in Tapan and Jambi. (denny)