KAL Energy completes acquisition of E. Kalimantan coal properties
Monday, February 12 2007 - 11:31 PM WIB
Canadian firm KAL Energy, Inc. announced on Monday completion of acquisition of Thatcher Mining Pte Ltd. by issuing 32,000,000 restricted shares for 100% of Thatcher, which has the rights to two large coal properties situated near the Mahakam River in North Eastern Kalimantan.
The company has also completed a private placement and has received a total of US$3,523,000 and will issue 17,615,000 restricted shares to the private placement investors. These funds are for working capital and for work programs planned on its coal properties.
According to the company's website coal resources in the properties has an estimate volume of 192 million tonnes of very low sulphur, very low ash coal.
The company said production is planned to commence in second Half 2007 at 200,000 tonnes, scaling to 5 MT within 4 years, and a long-term production of 15 MTPA.
The resource location provides for low-cost logistics and re-use of existing infrastructure, via river barging, it said.(alex)