Indus Coal obtains A$3.67m funding facility for Jambi coal project
Wednesday, April 9 2014 - 01:29 AM WIB
ASX-listed Indus Coal Ltd entered into an agreement on Monday with Gleneagle Nominees and others to establish a short term funding facility (Bridge Funding Facility) to help finance the development of the Block 9 coal project in Muara Tebo, Jambi Province.
An amount of A$3.67 million is to be provided to the company under the Bridge Funding Facility, Indus said in a statement obtained late Tuesday. ?Funding obtained by the company under the Bridge Funding Facility will be used upgrade the forestry license for the company?s Jambi Block 9 project, continue land clearances and complete the resources definition on Jambi Block 9. This work will facilitate the monetization of Jambi Block 9 with groups interested in acquiring all or part of Jambi Block 9 or to become a funding partner for Jambi Block 9,? the statement said.
Last month, Indus said that it has obtained the necessary approval from the local authority for production/operation activities in the Jambi coal project. The company said that on Block 9, it has delineated a 94Mt JORC Code Compliant Coal Resource, completed mine planning and mine studies, identified key infrastructure to commence mining operations and have completed all mining approvals for production.
The Bridge Funding Facility has a fixed interest rate of 50 percent of the principal funding provided to the company.
Under the terms of the Bridge Funding Facility repayment of the principal and interest, being the amount of AS5,505,000, is due on or before 30 June 2014.
Under the terms of the Bridge Funding Facility the company agreed to allot and issue 7,820,163 Bridge Funding Options to unrelated third party funding providers once it has obtained shareholder approval to do so.
In addition, the company agreed to allot and issue 2,179,837 Bridge Funding Options to two related parties (Scott Douglas and John Kenny) on the same terms as the unrelated third party subscribers once it has obtained shareholder approval to do so.
Editing by Reiner Simanjuntak