Geo Energy plans to acquire S. Kalimantan coal concession
Thursday, June 19 2014 - 04:24 AM WIB
SGX-listed Geo Energy Resources Limited, an investment firm engaged in the mining and selling of coal primarily in Indonesia, announced Thursday that it and subsidiaries have entered into a conditional sale and purchase agreement dated June 18 with Optimum Source Ltd to acqire a shareholding interest in the capital of Borneo International Resources Pte Ltd.
Geo said in a statement that the agreement would eventually allow the company to acquire stake in PT Sungai Danau Jaya, which owns two coal concessions in Angsana District, Tanah Bumbu Regency, South Kalimantan, with combined area of 236.1 hectares. Sungai Danau holds production operation mining business licenses for the two concessions, and has obtained the necessary permits including the so-called borrow and use forestry permit to carry out mining activities in the areas.
?As at the date of this announcement, the ultimate holding company (Borneo International) has entered into a conditional subscription agreement for new shares in the capital of PT Era Tiga Putra (the Indonesian PMA company) at the issue price of one million Rupiah per new share (the Indonesian PMA Company subscription) (such new shares representing 99% of the enlarged share capital of the Indonesian PMA company, when issued and allotted), which in turn via its 99.6% owned subsidiary, PT Karunia Mitra Berkat (the Indonesian local company), has entered into a conditional subscription agreement for new shares in the capital of PT Sungai Danau Jaya (the Indonesian operating company) at the issue price of one million Rupiah per new share (the Indonesian operating company subscription) (such new shares representing approximately 93.3% of the enlarged share capital of the Indonesian operating company, when issued and allotted) (the ultimate holding company, the Indonesian PMA company, the Indonesian local company and the Indonesian operating company, collectively the ?group companies?),? Geo Energy said in a statement.
The company also said that the concessions have reserves in excess of 30 million tons, and coal specifications of (i) the ash content of the Reserves do not exceed the maximum ash content of 5% (air dried basis); (ii) the hardgrove grindability index of the Reserves do not exceed the maximum hardgrove grindability index of 40-55; (iii) the sulphur content of the reserves do not exceed the maximum sulphur content of 1% (air dried basis); and (iv) the average calorific value of the reserves exceed the minimum calorific value of 4,100 kcal/kg (gross as received).
Editing by Reiner Simanjuntak