Jatenergy to complete Coal Soil acquisition this year end

By Demas Simbolon

ASX-listed Jatenergy Ltd through subsidiary Blackrock Resources Pty Limited, previously reported to hold a conditional share purchase agreement to acquire 80 percent of the shares of PT Coal Soil Brik, said in a statement submitted to the ASX that the timing of completion of this agreement depends on converting PT Coal Soil Brik into a foreign investment vehicle and obtaining the necessary government and regulatory approvals, with the completion of the transaction is targeted by the end of 2012.

PT Coal Soil Brik holds an exploration license for Katingan project in Central Kalimantan, with concession area covering 5,000 hectares of land.

The book value of the Katingan project remains unchanged from prior year at $1,478,235, while company directors are of the opinion that this figure significantly understates the true value of the Katingan asset, estimated to be between US$3?5 million.

"This estimate cannot be reflected in the company?s accounts owing to current accounting standards. The estimated valuation is based on negotiations for the sale of the concession, cash flow model and valuation of coal based on target mineralization of 38mt at 10c/ton, and is predictive in character. It may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and a formal valuation may differ materially," the company said.

Editing by Er Audy andri