Indus obtains mining license approval for Jambi coal project
Friday, March 14 2014 - 12:47 AM WIB
ASX-listed Indus Coal Limited said it has received the so-called IUP production / operation mining license approval for its coal project in Mura Tebo Regency, Jambi Province, from the mining office of the local regency administration.
Indus Executive Chairman Scott Douglas commented: ?This is a significant milestone for Indus. On Block 9 we have 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.?
?It should be noted this has all been completed within 14 months of acquiring the Jambi Coal Projects. It is a credit to the Indus team and again highlights the value of our Indonesian partner, PT Param Energy.?
?Our focus is to continue discussions with the groups interested in acquiring or co-funding Block 9 and upgrading the forestry exploration permit in the third quarter of 2014,? he added.
Indus advised it has extended the term of the Convertible Bonds currently on issue and has raised $3.67 million, before costs, through a Bridge Funding Facility.
The refinancing enables Indus to progress with upgrading the Forestry license for Block 9, continue land clearances and complete the resource definition on Block 9 to facilitate the monetization of Block 9 with groups interested in acquiring all or part of Block 9 or to become a funding partner for Block 9, the company said.
Subject to shareholder approval, the term of the Secured Convertible Bonds has been extended until 30 September 2014 and the conversion price of the 3,945 bonds has been adjusted to $0.10. As part of the refinancing, Indus will, subject to shareholder approval, issue 3,941 free options for each bond (being a total of 15,547,245 options) to the bondholder with a term of 24 months, each with an exercise price of $0.10.
As with the Secured Convertible Bonds, the Bridge Funding Facility is secured over the assets of Indus.
The current Block 9 JORC resource estimation is 94,094,218 tons (JORC Indicated + JORC Inferred) across all coal seams. On average the coal has a 5,300 GCV (adb).
Editing by Reiner Simanjuntak