Borneo Resource Investment signs LoI to acquire Bumi Energy
Friday, March 9 2012 - 01:47 AM WIB
US-listed holding company for investment platform, Borneo Resource Investments Ltd., said that it has signed a binding letter of intent (LoI) to acquire 100 percent of BT Bumi Energy Kalimantan ("Bumi") which held 3,200 hectare of coal concession in Kalimantan.
The concession has estimated reserves of approximately 28 million metric tons of high-quality thermal coal.
"This acquisition comes on the heels of our acquisition of PT Integra and will add substantially to our reserves of high-quality thermal coal, greatly increasing the overall value of our coal portfolio." Nils Ollquist, Chairman and CEO of Borneo said.
"This property has been thoroughly explored and has existing geological data and visible outcrops across the concession. We are very excited about this acquisition and anticipate that we will continue to add to our portfolio and increase shareholder value as we build the company."
Borneo Resource Investment is a holding company for an investment platform comprising thermal coal concessions and licenses in Kalimantan. The company, has through its wholly owned subsidiary, Interich International Limited, acquired an 80 percent interest in PT Cahaya Meratus Primecoal, an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin at southeast region of Kalimantan.
The company has also acquired exclusive rights to an exploration and production license covering 1,300 hectares in Kalimantan through an agreement with the concession holder, PT Integra Prime Coal.
Editing by Cepi Setiadi