Exalt Resources updates Indonesian coal projects
Friday, April 26 2013 - 03:07 AM WIB
PT Karindangan (?Karin?)
Karindangan was included on the Clean and Clear Register (?CnC?), Stage VIII on 23 January 2013. The fieldwork for the mapping study of Karin has been completed, and when received, the final mapping study will determine the extent of an exploration drilling program.
An additional report is expected from the vendor regarding coal quality of mapped outcrops. Drilling and logging quotes have been obtained for the drilling program but wet weather is hampering operations particularly adjacent to the floodplain of the Barito River.
PT Mitra Maju Bangun Persada (?MMBP?)
Initial mapping studies on MMBP have been somewhat delayed by wet weather. A final report is expected during the current quarter. Additional mapping is being organized for mapping the remaining northern part of the concession, which has access problems caused by wet weather.
PT Bakti Inti Guna (?BIG?)
Verification sampling is due to commence at the BIG concession this month, with an anticipated drilling program to follow the concessions? re-admission onto the CnC. The already 32 existing coal outcrops will be sampled and analysed.
Assessment and acquisition of near term coal production assets
In parallel with its exploration activities, the Company has been actively pursuing acquisitions of several attractive coal assets with near-term production potential in Indonesia tocomplement the existing suite of exploration phase projects in a small number of selected ?hub? locations.
The hub areas have been chosen due to their position in successful existing coal mining zones and benefit from a wealth of regional geological data, a broad range of experienced mining contractors, extensive existing infrastructure with capacity for new entrants and a supportive local community and government.
Preliminary legal, geological and commercial due diligence has been completed with promising results.
Geological due diligence has included site visits, field mapping, detailed coal quality testing for existing and new outcrops, development of borehole/outcrop databases, geological model verification, resource statement clarification and subsequent exploration drilling proposals on two concessions.
A non-binding, Memorandum of Understanding (including an exclusivity period for the benefit of Exalt) has been signed on each of three concessions, located in the Indonesian Provinces of West Sumatra and South Kalimantan.
Advanced negotiations in relation to conditional Saleand Purchase agreements are also in progress with the owners of highly prospective concessions in Central Kalimantan and West Sumatra.
The Company and its advisors are currently in discussions with several potential funding sources including senior debt financiers, strategic joint venture partners and commodity trading houses to attempt to secure sufficient acquisition and working capital financing for these projects. (end of excerpt)