Gobel, Luwia become Churchill?s EKCP shareholders

UK-listed coal firm Churchill Mining Plc announced Tuesday that it has agreed a private placement of ordinary shares to Indonesian businessman Rachmat Gobel and Fara Luwia, through a jointly-held company which majority is owned by Gobel.

The placement will be for 19,345,000 new ordinary shares at a price of 40 pence per share, representing a 60% premium to the 20-day volume weighted average share price as of 28 April 2011, the company said.

The transaction will raise more than ?7.7 million (approximately US$12.8 million) and brings to Churchill a significant Indonesian shareholder that has both the financial capacity and local presence necessary to help see the East Kutai Coal Project (EKCP) through from its current legal challenges to its production phase.

Following completion of the placement, it is anticipated that Gobel and Luwia jointly will hold approximately 16.5% of the enlarged issued ordinary share capital of Churchill.

Gobel is the President Director and majority owner of PT Gobel International. PT Gobel International is a well-known and highly respected company with an impressive track record of partnering with international companies in Indonesia, the company said.

Luwia is a successful Indonesian businesswoman who is currently developing one of the largest modern rice mills in Indonesia in partnership with a large global commodities trader based in Switzerland. Previously, Luwia was involved in the franchise business of major European brands in clothing and furniture, and was also active in real estate for more than 12 years.

As part of the transaction, Gobel and Luwia will be entitled to appoint two directors to the board of Churchill.

Churchill will use the proceeds of the placement for the further development of the East Kutai Coal Project.

Earlier, Churchill Mining announced that the State Administrative Tribunal in Samarinda, East Kalimantan, has ruled against the company and its Indonesian partners, the Ridlatama Group.

Churchill and Ridlatama initiated the Administrative Tribunal in September 2010 in order to have the original cancellations officially expunged from the record, as they considered that the East Kutai regent had violated a number of administrative protocols as in 2010, the regent have cancelled the four mining licenses that comprise the East Kutai Coal Project (EKCP). (romel)