Cokal acquires 75% equity of Tambang Benua

By Puspita Maylana Devi

ASX-listed Global metallurgical coal group Cokal Limited has entered into an agreement to acquire a 75 percent interest in tenements adjoining its Bumi Barito Mineral Coal Project (BBM) in Indonesia.

Under the agreement, Cokal will acquire 75 percent of the equity of PT Tambang Benua Alam Raya (TBAR)and local Indonesian partners will hold the 25 percent balance of the equity. TBAR has exploration area of 18,850 hectares.

Brisbane-based Cokal?s Executive Chairman Peter Lynch said ?the acquisition of PT Tambung Benua Alam Raya (TBAR) was another major step forward for the company, which is on track to commence construction of its proposed BBM coal mine in Central Kalimantan later this year?.

?Since the start of the new year, Cokal has achieved three important milestones towards obtaining the necessary approvals for the BBM project, having completed and submitted our EIS, together with the applications to upgrade the mining license and the forestry permit,? Lynch said.

?The TBAR acquisition represents a significant opportunity for Cokal to achieve further exploration success which would provide the company with ability to leverage off the infrastructure planned for the development of the adjoining BBM project?.

Lynch said that Cokal has executed a binding Share Sale and Purchase Agreement (SSPA) with the owners of TBAR, which adjoins the southern boundary of BBM.

?This is the same mechanism which Cokal has used successfully to acquire the interests in all of its existing tenements in Indonesia,? Lynch said.

Editing by Adianto P. Simamora