Geo Energy makes second prepayment for acquisition of S. Kalimantan coal mine
Monday, November 3 2014 - 04:09 AM WIB
SGX-listed Geo Energy Resources Ltd, an Indonesian coal mining specialist, announced Monday it has signed an agreement to make a second prepayment of US$10 million in relation to the acquisition of a 66 percent shares in Borneo International Resources Pte Ltd (BIR), which owns coal mines in South Kalimantan.
The company said that the agreement on the second prepayment was signed on November 3 with Optimum Source Limited, the vendor.
?The board wishes to announce that the company has entered into a second additional agreement dated 3 November 2014, pursuant to which the company shall pay the second prepayment sum to the vendor,? Geo said in a statement.
On September 26, Geo made the first prepayment of $10 million to the vendor.
The acquisition of BIR was completed on August 18, by which time Geo made the first tranche payment of $10 million as part of the total consideration of $55 million.
The prepayment sum and the second prepayment sum shall be fully refunded by the vendor in the event any of the remaining conditions required to meet the clean and clear status of the mining areas set by the government of Indonesia are not satisfied, Geo said.
BIR, through its Indonesian?s subsidiary PT Sungai Danau Jaya (SDJ), owns two coal concessions in Tanah Bumbu Regency, South Kalimantan, with a combined area of 236.1 hectares, and contain coal with an average calorific value of 4,038 kcal/kg (GAR).
Editing by Reiner Simanjuntak