Cokal receives $150m funding offer
Wednesday, December 4 2013 - 01:14 AM WIB
ASX-listed global metallurgical coal group, Cokal Limited announced that it has received a conditional proposal for a debt financing facility of US$150 million from international consortium including Platinum Partners. The facility will initially be used to fund Cokal?s Bumi Barito Mineral (BBM) Project in Central Kalimantan.
?Cokal has now entered into detailed negotiations on the proposal which is in the form of a nonbinding Memorandum of Understanding (MOU) and is subject to various terms and conditions including the completion of Technical and Legal Due Diligence and obtaining the necessary regulatory approvals for the project to proceed,? the company said in a statement.
The company recently announced an upgraded JORC resource for the BBM project and is in the final stages to the completion of a Definitive Feasibility Study ( DFS ) to achieve a bankable status.
The BBM Coal Project (IUP 188.45/149/2013) 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 264 million tons (Mt) in multiple seams comprised of 10.5Mt Measured, 13.5Mt Indicated and 240Mt Inferred Coal 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 2014.
Editing by Reiner Simanjuntak