Due diligence on Damanka coal mine to be completed soon

By Edgar Subroto

East Kalimantan coal miner PT Damanka Prima, a coal unit of IDX listed ATPK Resources, said that an ongoing due diligence process by an investors interested to acquire the mine will soon be completed.

In accordance with the agreement, the due diligence process is scheduled to be completed in December, a source in the industry told Petromindo.com Tuesday.

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