Deadline for acquisition of Batubara Selaras extended

Singaporean firm Antig Investments Pte has agreed to extend the cut-off date for the purchase of a majority stake in PT Deefu Chemical Indonesia that controls a coal mining company in East Kalimantan.

Antiq Investment is a wholly-owned subsidiary of Magnus Energy Group Ltd.

Magnus said in a statement on Thursday that both Antiq and the owners of 72 percent shares in Deefu had agreed to extend the cut-off date of the Shares Sale and Purchase Agreement (SPA) to May 31, 2006 or any other date to be agreed upon by both parties, from the original sechedule of February 28, 2006.

Magnus said the extension came as both found they still needed to fullfill some conditions precedent under the SPA.

Under the SPA, Antig has agreed to buy 72 percent shares in Deefu for US$18.0 million.

PT Deefu is the owner of 95 percent shares in PT Batubara Selaras Sapta, a third generation Coal Contract of Work (CCoW) holder with concession in Pasir regency, East Kalimantan,

Magnus earlier said one of the concession prospective areas was estimated to contain around 500 million tons of inferred and indicated coal reserves with calorific value ranged from 6000 to 7000 Kcal/kg. (Robert)