Cokal: BBM project on schedule with extra funding
Monday, August 11 2014 - 01:29 AM WIB
ASX-listed global metallurgical coal group Cokal Limited announced Monday that development of its Bumi Barito Mineral (BBM) coking coal project in Central Kalimantan continues on schedule having secured further additional loan funds of US$5.650 million from a fund managed by Platinum Partners (Platinum), bringing the total loan for the project development to date to $9.150 million.
The company said in a statement that due to the significant progress being made with both the BBM project and the finalization of the BBM financing package, Platinum has agreed to advance the additional funds to ensure progress is maintained on the project while the final steps of the BBM financing documentation are put in place.
These funds will enable work to progress on the detailed engineering and final design to progress and complete the preparation work necessary to enable site based construction to start promptly once the BBM project financing is finalized, the company explained.
Cokal said it has agreed to extend Platinum's exclusivity period to 6 October 2014 to finalize the project finance agreements.
Repayment of the first loan has been extended with the total loan of US$9.150 million now repayable within 6 months of receiving the additional loan funds. The total loan can also be rolled over into the BBM project financing facility once it is in place.
As previously announced on 31 March 2014, the proposed BBM funding package included the proposed grant of 100 million warrants (options) with an exercise price of A$0.20 and an exercise period of 4 years from the date of grant.
Cokal will grant 15 million of these options following drawdown of the additional loan. The intention is that the balance 85 million options will, subject to shareholder approval, be granted once the BBM project finance is finalized.
The options will be exercisable at any time before expiry. The options will not be listed but will be transferrable. Payment of the exercise price may be satisfied by the holder paying the exercise price in cash or causing the provider of the bridge loan or project finance to reduce the principal owing by the amount of the exercise price. Shares issued on exercise of an option rank equally with all other ordinary shares then on issue. If trading in Cokal shares has been suspended for more than 10 days in any 12 month period or if Cokal is delisted or its substantial assets privatized, the option expiry date will be extended to 8 years after the date of grant. Customary provisions apply in relation to the adjustment of the option terms in the event of capital reconstruction, rights issues or bonus share issues.
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 14,980 hectares. The Project is adjacent to the BHP Billiton?s, Indomet Coal, Joloi Project in Murung Raya Regency.
Editing by Reiner Simanjuntak