Cokal completes sale of AMM
Monday, March 21 2016 - 04:51 AM WIB
ASX-listed metallurgical coal company Cokal Limited announced Monday the completion of the sale of its 75 percent interest in of PT Anugerah Alam Manuhing (AMM) for US$ 150,000 to PT Jinantra Karya Ray,a an Indonesian company owning the tenements adjacent to AMM.
Cokal said in a statement it considered AMM a non-core tenement located a considerable distance west, in another geological formation, from Cokal?s main tenements located in Central Kalimantan.
While PT AAM contains high Calorific Value (CV) thermal coal, is contains little possibility of any discovery of metallurgical coal, the core focus for Cokal. It was therefore considered appropriate in the current climate to realize the value of AAM, reduce ongoing liabilities and to use the funds for working capital while the board purse the funding options previously announced, the company explained.
In addition and as a result of the experience built up over past five years by Cokal in the Indonesian mining regulatory process-Cokal?s Bumi Barito Mineral Coal Project (BBM) being the only mining project to be issued a new Production Forestry Borrow and Use Permit (IPPKH) approval since the new process was announced by the Indonesian Government on January 26, 2015?Cokal will provide PT Jinantra Karya Raya non-exclusive consulting services on a retainer basis. The retainer is for US$400,000 and expires on June 12, 2016.
According to Cokal?s website, AAM is a foreign investment company (PMA) with an ownership structure comprising Cokal 75 percent and Indonesian owners 25 percent. A total of eleven coal outcrops were recorded during a geological mapping survey investigation which discovered coal seam thicknesses ranging between 0.42m and 4.20m.
The field descriptions and photographic evidence are supportive of a high rank coal. These higher coal ranks are characterised by very low volatile matter content, very high carbon content and high specific energies. At this stage, AAM is interpreted to consist of thermal and metallurgical coals of export quality.
Editing by Reiner Simanjuntak