Exalt signs deal to acquire Odni Holding
Tuesday, July 24 2012 - 01:38 AM WIB
Australia-listed company Exalt Resources Ltd said that it signed a sale and purchase agreement to acquire 100 percent of the issued capital of Singapore-incorporated coal investment company, Odni Holdings (Pte.) Ltd.
The acquisition of Odni will provide Exalt with the ability to investigate and, if initial exploratory results are satisfactory, to acquire all of, or an equity interest in, a number of prospective coal mining projects in the Kalimantan, Sumatra and West Papua regions of Indonesia.
Barry Tudor, CEO and Managing Director of Exalt said ?The proposed acquisition will provide Exalt with a unique opportunity to investigate and secure access to a huge bank of quality exploration concessions on known coal formations, close to infrastructure and the world?s largest coal markets.
?We have focused on Indonesia because we believe it offers the best value opportunity for coal sector investors at this point in time. We aim to generate significant value for shareholders through an intensive and focused exploration program with the objective of achieving a large JORC compliant resource in the near future. Exalt will apply Australian development expertise while leveraging off strong local partners and connections to expedite project development.?
The initial projects include a very large exploration area in South Sumatra spread over 11 concessions and covering approximately 250,000 hectares, with the potential for a large resource.
Exalt will also acquire the rights to acquire two concession areas in East Kalimantan and one in Central Kalimantan over known coal formations. In addition, Exalt is underway with due diligence on a producing asset near one of the world?s largest coal mines.
In addition to the initial projects, the proposed acquisition of Odni will also provide Exalt with a compelling pipeline of greenfield, brownfield and producing projects in Indonesia, with the aim of building a substantial diverse portfolio of Indonesian coal assets.
Editing by Adianto P. Simamora