Jatenergy: Sale of Katingan coal project awaits govt approval
Tuesday, January 21 2014 - 01:48 AM WIB
ASX-listed Jatenergy Ltd announced Tuesday that although the original deadline to complete the sale of its PT Coal Soil Brik (CSB) coal project in Katingan, South Kalimantan, to Indonesian firm PT Prakarsa Corporindo has expired, the two have agreed to continue to work together to complete the sale.
?Both Jatenergy and PT Prakarsa Corporindo still want to complete the sale and are working together to obtain local government acknowledgement and approval of the share transfer,? Jatenergy said in an update statement, without providing further details.
As part of a strategy to divest interest in long-term unproductive assets and to focus on existing productive coal assets, Jatenergy signed on July 17, 2013 a conditional agreement with Prakarsa for the sale of CSB.
In September of last year, the company said that it has satisfied the conditions precedent, declaring that the sale has been completed and final. Under the agreement, Prakarsa made a US$200,000 deposit on July 17, 2013 towards the total $2 million purchase price, with the remaining $1.8 million supposedly to be paid no later than December 17, 2013.
Editing by Reiner Simanjuntak