Jade sign MoU to acquire Riau coal prospect

Singapore Exchange-listed firm Jade Technologies Holdings Ltd., through its Indonesian subsidiary, PT Merlion Resources International, has signed a binding MOU with PT Lipan Kokindo (LK) and two other potential individual investors to cooperate in the exploration and development of a coal mine located at IV Koto Sitingkai Agung, Riau Province (KSA Coal Mine).

LK has granted PT Merlion the exclusive right to conduct due diligence and feasibility studies on the KSA Coal Mine. Upon successful due diligence, both parties will enter into a definitive agreement under which PT Merlion will be granted exclusive rights to carry out mining activities at KSA Coal Mine, including the right to market all the coal and to receive all coal revenues.

PT LK will receive a royalty from PT Merlion for the coal mined.

Meanwhile, Jade also reported that it had decided not to proceed with Mt. Galugua coal mining project in West Sumatra due to low reserves and low coal quality.

?As such, the Company has commenced discussions with its joint-venture partner to discontinue and unwind its investments in the Mt Galugua coal-mining project,? it said.(alex)