Cokal appoints Macquarie to advise financing proposal
Wednesday, October 16 2013 - 01:31 AM WIB
ASX-listed global metallurgical group Cokal Limited said Wednesday it has appointed Macquarie Capital (Australia) Ltd as corporate adviser to assist in relation to financing proposal from Singapore-listed investment firm Blumont Group Ltd and any alternate proposals if received.
As reported by this portal on October 8, Cokal has been in discussion with Blumont about a US$77 million funding package designed to fund the equity requirements for its BBM coal project in Central Kalimantan. The two were also finalizing commercial terms for a proposed A$124 million takeover of Cokal by Blumont.
The BBM Coal Project is situated in Central Kalimantan, Indonesia, in the prospective metallurgical Upper Barito Coal Basin, Regency of Murung Raya. The Project covers an area of 15,000 hectares. The Project is adjacent to the BHP Billiton?s, Indomet Coal, Joloi Project in Murung Raya Regency.
BBM currently has a JORC Resource of 77 Million tons (Mt) in multiple seams comprised of 70Mt Inferred and 7Mt Indicated Resources. Cokal has also been working on converting the 200 to 350Mt additional Exploration Target1 in to JORC resources. Cokal is completing definitive studies and obtaining the necessary approvals with the aim of commencing construction in late 2013 which would see first production occur in the first half of 2014.
Editing by Reiner Simanjuntak