Aussie firm signs HoA to identify coal prospects in Indonesia

West Perth-based firm C @ Limited (CEO) announced Thursday that it has entered into a Heads of Agreement (HOA) with PT Ethica Trada Cermelang (Ethica) on accelerating the identification and development of coking and high energy thermal coal projects in Indonesia.

Ethica is a leading professional services firm to the coal industry in Indonesia with extensive local market intelligence.

The agreement with Ethica provides CEO with a strategic partner in Indonesia that brings along the expertise, capabilities and local support to identify and evaluate suitable Indonesian coal asset development opportunities. CEO has already commenced reviewing projects identified by Ethica, and is encouraged that even in a relatively well established and developed coal market such as Indonesia, a pipeline of potential projects is still available, the company said.

The HOA is for a period of six months, with a further six month option available at CEO?s election. During this time CEO will reimburse Ethica for expenditure related to these activities. Upon identifying a suitable Indonesian coal opportunity, an unincorporated joint venture will be established with Ethica to acquire the project assets. CEO will retain the majority interest in the joint venture projects. Ethica will also have the opportunity to acquire an additional minority contributing interest in the joint venture.

CEO Managing Director Mark Earley comments ?the agreement brings extensive in -country business experience and network through the Ethica management and access to their established services to the coal industry in Indonesia. The Company is on track with its investment strategy in both Mongolia and Indonesia, two countries identified for their prospective coking and thermal coal project opportunities, having recently secured a number of significant licenses in Mongolia under a similar model.? (romel)