Kangaro completes transaction with Bayan

By Ruli Setiawan

ASX-listed Kangaroo Resources Ltd (KRL) announced Thursday that settlement of the PT Sumber Aset Utama (SAU) transaction has occurred with its strategic alliance partner and majority shareholder, IDX-listed coal firm PT Bayan Resources Tbk.

KRL said in a statement that Bayan has paid US$12 million in consideration for the company?s SAU infrastructure assets comprising a haul road between one of its Pakar concessions and the Senyiur Port and land, infrastructure, buildings and fixed equipment at Pakar and the Senyiur Port in East Kalimantan.

The sale proceeds have been used to repay Bayan in part repayment of KRL?s existing loan from Bayan. ?The completion of the SAU transaction has the dual benefit of reducing the loan outstanding to Bayan and will provide the company access to Bayan?s 16-meter wide coal haul road and barge loading facilities rated to 6,000 tons per hour that it has already constructed in the Tabang/Pakar area,? the statement said.

Managing Director, Russell Neil said ?The completion of the SAU transaction provides us rights to use Bayan?s infrastructure that it has already constructed and brings us one step closer to achieving commercial production.?

Neill was appointed as CEO and Managing Director of KRL on May 5. ?Mr Neil, an executive with Bayan will remain an employee of Bayan but his services, representing approximately 50% of his time, will be provided to the company on a secondment basis for the period up to May 2017. The company will pay a fee of US$18,000 per month for Mr Neil?s services, representing approximately 50% of the total cost to Bayan of employing Mr Neil,? KRL said in a statement.

Editing by Reiner Simanjuntak