Exalt progressing on fund raising for acquisitions

By Romel S. Gurky

Australia-listed company Exalt Resources Limited recently announced that it has agreed to place up to 3,750,000 fully paid ordinary shares at an issue price of 18 cents per share to raise funds of $675,000 less expenses to contribute to the funding of the transaction costs associated with the proposed 100 percent acquisition of issued capital by Singapore-based coal investment company Odni Holdings Pte Ltd on April 5.

Exalt stated that the placement shares are to be issued to sophisticated investors, in which a fee of 6 percent of all cash raised is payable upon the completion of the raising and the issued of the placement shares are being placed pursuant to the company's 15 percent capacity under ASX listing rule.

Upon completion of the acquisition, Exalt will be granted the the rights to further delineate and develop the coal mining opportunities identified by Odni which has secured right to acquire varying degrees of ownership interests in a total of six Indonesian coal projects.

Three of these projects, Damanka project in East Kalimantan, PT Bakti Initi Guna (?BIG?) Project and Sugico South Sumatra project, are currently the subject of due diligence and formal documentation, which is expected to be complete in the second quarter of 2012.

Damanka is an existing production concession in East Kalimantan covering 4,923 hectares in the Muara Wahau Coal Field coal area, in which ODNI has secured the option to acquire a 70% 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.

Sugico South Sumatra project covering approximately 250,000 hectares, on which ODNI has secured the option to acquire a 50% ownership interest by paying an initial sum of US$10 million and by funding an exploration program of up to US$20 million and the payment of a production and sales based royalty of US$2.00 per ton.

Initial exploration expenditure on this project is expected to be approximately US$5.0 million.

Project BIG, short for PT Bakti Initi Guna Project, consists of a concession area covering a total area of 4,969 hectares in the Antutan region of the Bulungan Regency in East Kalimantan province. The area is held as an exploration mining business permit allowing for all exploration activities in relation to coal deposits.

Editing by Er Audy Zandri