Cokal secures financing for Bumi Barita coal project
Thursday, November 7 2013 - 10:41 AM WIB
ASX-listed Cokal Limited announced on Thursday that it has received an initial advance of US$2 million from Blumont Group Limited under the $8 million Facility Agreement announced on Oct. 8, 2013. A further advance of $2 million is due on Nov. 19, 2013, with the balance to be advanced subject to mutual agreement, the firm said in a statement filed with the Australian Stock Exchange, adding the funds will be used to continue the development of the Bumi Barito Mineral (BBM) Coal Project in Central Kalimantan.
?As previously announced negotiations continue with Blumont on a complete financing package to enable Cokal to build the mine and associated infrastructure at its BBM Coal Project to reach first production next year,? it said.
The loan is repayable within 3 years, interest is 5 percent per annum, payable quarterly in arrears and can be capitalised and repaid at maturity. The facility is secured by up to 5 percent of Cokal?s shares in Cokal Holdings Pte Ltd.
If a future placement is made to Blumont and should the subscription agreement require, the placement funds received from Blumont will be used to repay the loan. The loan is otherwise on customary terms and conditions for a loan of this nature, size and type.
The BBM Coal Project (IUP 188.45/149/2013) is situated 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 the first half of 2014.
Editing by Johannes Simbolon