Jatenergy satisfies conditions precedents for South Kalimantan coal project

By Peni Pedriawan

ASX-listed Jatenergy Limited announced on Thursday that the conditions precedents have been fulfilled for the sale of the Coal Soil Brik project in South Kalimantan

The firm said in a statement that it signed a conditional agreement with PT Prakarsa Corporindo on July 17, 2013, whereby conditional precedents needed to be fulfilled to progress the sale of the project.

The conditions precedents were as follows:
? Details on regulatory and corporate matters, preparation of shareholder registrations, details of government approvals and company registration, provision of company financial statements, an announcement in national Indonesian newspaper of the sale, formal notification of employees and evidence of a General Meeting of Shareholders.
? Internal consent from sellers.
? Third party consent as and if required from the government.

The conditions precedents have since been satisfied meaning that the sale is complete and final. Under the agreement, Prakarsa Corporindo made a US$200,000 deposit on 17 July 2013 towards the total $2 million purchase price with the remaining $1.8 million to be paid no later than Dec. 17, 2013.

In 2011, Jatenergy acquired an 80 percent ownership in the Coal Soil Brik thermal coal project through the acquisition of Blackrock. The project is located 160 km northwest of the city of Palangkaraya in the South Kalimantan Province on the island of Borneo.

The satisfaction of the conditions is a significant milestone in Jatenergy?s strategy of divesting long-term assets to focus on currently producing coal assets, the firm said.

Jatenergy Managing Director Tony Crimmins said: ?The fulfillment of the conditions precedents and the consequent sale of the asset will allow Jatenergy to continue its strategy of energy project development with a strong focus on the development of our coal producing assets.?

Editing by Johannes Simbolon