Aus Asia to acquire additional coal rights in RI

By Romel S. Gurky

ASX-listed Aus Asia Minerals Limited (Aus Asia) announced Monday that its wholly owned subsidiary, Aus Asia Coal Limited has executed a non-binding heads of agreement (HOA) with respect to acquiring the mining rights of CV Cantung Karya Mitra Mandiri (CV CKMM) in Indonesia.

Subject to the completion of due diligence, including all necessary legal and regulatory approvals as part of the conditions precedent, Aus Asia through its subsidiary will acquire 100 percent of the mining rights and IUP of CV CKMM, the company said in a statement.

The CV CKMM coal concession is located in Tanah Bambu Regency, South Kalimantan. It is approximately 10 km from a port and is currently exporting mid calorific coal to China.

Under the HOA, subject to the completion of due diligence the entering into of formal documentation and shareholder approval, the vendors of CV CKMM will receive 100 million shares in Aus Asia at a deemed price of $0.02 per share upon formal transfer of the IUP. The vendors will receive a further $2 million worth of shares upon the successful export of 1 million tonnes of coal based on a 14 Day VWAP at the date of issue.

Commenting on the execution of the signing of the non-binding HOA, Executive Chairman, Robert Swarbrick said: ?Upon acquiring the mining rights for CV CKMM, Aus Asia Minerals will have the opportunity to gain access to immediate production from current mining operations, with additional capital raised, aimed at increasing production. Furthermore the vendors of CV CKMM are well known and have a long term relationship with the authorities in the region, enabling Aus Asia to develop and build upon these relationships with the view to acquire other mining opportunities.?

Aus Asia currently operates the 90-hectare Painan East Coal Project (PECP), which is located approximately 50 km away from Padang, West Sumatra Province. The company hopes the project to start production in 2015.

Editing by Reiner Simanjuntak