Indus Coal to acquire 3 coal projects in Jambi

By Demas Simbolon

ASX -listed Indus Coal Limited announced that it has entered into transaction documentation to purchase 3 thermal coal bearing concessions with the total area of 14,394ha in Jambi province.

The purchase of the concession would be made in three staged basis of which 38 percent of shareholding would be exchange for US$6,500,000. The second stage would involve the purchase of a further 38 percent shareholding in exchange for US$9,500,000.

Under stage three, Indus would pay $27-million in cash and would issue 130-million shares and 86-million performance options to gain full ownership of the three Jambi coal projects, upon the completion of a 150-hole Joint Ore Reserves Committee compliant drilling program, resulting in an indicated resource greater than 100-million tons.

Indus was planning a capital raising to fund the first stage of the transaction.

The tenements are also surrounded by existing local infrastructure, including roads, jettying and barging contractors, with available capacity, which support the nearby mines.

One of the tenement areas, block 9, has an exploration target of between 70-million and 75-million tons of thermal coal, over a strike length of 4.5 km by 1.5 km wide.

Editing by Adianto P. Simamora