Geo Energy to complete acquisition of coal mine in April
Friday, March 31 2017 - 04:04 AM WIB
SGX-listed Geo Energy Resources Limited said it hopes to complete the acquisition of 100 percent shares in Borneo Bara Resources Pte Ltd from Sunrise Wealth Success Ltd in April of this year.
Geo Energy also said in a statement Thursday that it had negotiated with the vendor to modify, amend and vary certain terms and conditions of a February 2016 agreement, in particular the reduction of the consideration as well as the waiver of the requirement for the independent technical report as a condition precedent for the proposed acquisition.
?The company, through GEO Energy Investments Ltd, a wholly-owned subsidiary of the company, targets to complete the proposed acquisition in April 2017,? Geo Energy said in an update statement of the planned acquisition.
Borneo Bara owns nearly 80 percent of PT Parisma Jaya Abadi (PJA) coal mine in Kutai Kartanegara Regency, East Kalimantan Province, Indonesia. Geo announced in February of last year its proposed acquisition of PJA for US$18 million.
Elsewhere, Geo Energy also said it is still in the process of completing the acquisition of PT Tanah Bumbu Resources (TBR), which is a mining concession strategically located next to the group?s Sungai Danau Jaya coal mine in South Kalimantan.
After the completion of these acquisitions, the company said it will have expanded its coal reserves to over 90 million tons.
Editing by Reiner Simanjuntak