Indus Coal continues negotiation with financiers
Friday, December 18 2015 - 03:51 AM WIB
ASX-listed Indus Coal Limited announced Friday that it is continuing to negotiate details of the variation agreements to be entered into with financiers of its two existing bond issues.
The company said in a press release that it is continuing to seek to raise funds via a third secured bond issue. This raising of capital for working capital purposes is subject to and conditional upon (amongst other things) the successful restructuring of the terms of its two existing bond issues.
Indus said it requires immediate additional working capital to meet the settlement of a summary judgement on costs associated with the company?s corporate office of approximately $74,000.
?In conjunction with the debt restructure, the Board is seeking to finalise a capital raising solution to meet these immediate working capital requirements,? the statement said.
?In that regard, the Board wishes to advise that its securities remain suspended at the request of the company pending the release of an announcement regarding the debt restructuring, capital raising terms and outcome of the results of the PLN submission on or before January 22, 2016,? it added.
Elsewhere, Indus provided the following update on its mine mouth power plant project on Block 9 in Jambi, Indonesia.
The Board refers to the ASX announcement dated July 21, 2015 in relation to the Memorandum of Understanding (MOU) signed by PT Berlian Mahkota Coal (BMC) (Indus 38%) with a Tier 1 Chinese power plant engineering and construction company to develop a new mine mouth power plant on Block 9, Jambi.
BMC engaged consultants to prepare a pre-feasibility report for the mine mouth power plant for the submission to the Indonesian state owned electricity utility Perusahaan Listrik Negara (PLN) to construct a coal fired steam power plant (CFSPP) and an official submission has now been lodged with the PLN for their consideration. The results of the submission are expected to be announced by the PLN in mid- January 2016.
BMC, in which Indus has a 38 percent stake, is the 100 percent owner of the Blok 9 coal concession in Central Tebo District, Tebo Regency, Jambi. The concession has an estimated JORC resource of 94,000,000 tons of thermal coal.
Editing by Reiner Simanjuntak