Altura executes formal acquisition deal for 2 projects in S. Kalimantan
Monday, August 20 2012 - 09:31 AM WIB
ASX-listed firm Altura Mining Limited announced that it has executed a formal Sale and Purchase Agreement (SPA) to purchase an 80 percent equity in the PT Kodio Multicom (KM) and PT Marangkayu Bara Makarti (MBM) coal projects located in south of Altura's existing three Tabalong coal projects in South Kalimantan.
The company said in the statement to the IDX that the vendors will retain the remaining 20 percent equity in each project.
Altura will manage each tenement in addition to coordinating and guiding their development and operation with support from the local partners.
The financial consideration for the acquisition is US$1 million per project plus a royalty to the vendors of US$2.50 per tonne of coal mined and sold from each area.
The vendors will also be provided with a carried interest in the projects with repayments for the carried interest recovered from profits once the projects are in operation.
The vendors will also be provided with a loan facility of up to US$4 million to assist in their plans to provide possible long term transport solutions to the Tabalong region.
The loan facility will be made available to the vendors as pre-determined development milestones are achieved at KM and MBM over the next 12 to 18 months. The loan will be repaid from royalties payable to the vendors for coal mined and sold from KM and MBM until the debt is extinguished.
Editing by Adianto P. Simamora