Confusion over Damanka acquisition
Wednesday, November 21 2012 - 02:25 AM WIB
An ongoing due diligence process to acquire shares in East Kalimantan coal miner PT Damanka Prima, a coal unit of IDX listed ATPK Resources, has baffled some players in the coal industry, according to a source.
The source told Petromindo.com that to his knowledge, Damanka has made a cooperation agreement in 2009 with an Indian firm, through its Indonesian firm PT Hardeo Mines. Based on the deal, it said that the cooperation is exclusive, therefore without Hardeo?s prior approval Damanka shall not enter into similar cooperation provided under the agreement with any third party
The deal also mentions that no change in shareholders of Damanka shall take place without the prior written approval from Hardeo.
According to the source, there is no approval yet from Hardeo for ATPK to offer Damanka to another party.
The source also said that several shipments have been made by Hardeo Mines from the Damanka mine.
An ongoing due diligence process by an investors interested to acquire the mine is scheduled to be completed in December, according to the source.
The investor conducting the due diligence is Australia-listed firm Exalt Resources Ltd, through its Singapore registered coal investment firm Odni Holdings Pte.
Damanka is an existing production concession in East Kalimantan covering 4,923 hectares in the Muara Wahau area, in which Odni has secured the option to acquire a 70 percent ownership interest by the initial payment of USD$250,000 (which has been paid) and a further payment of USD$800,000 upon the execution of a Share Purchase Agreement. Initial exploration expenditure on the Damanka Project which has been granted a production license, is expected to be in the order of US$1.5 million.
Editing by Reiner Simanjuntak