Kangaroo prepared to acquire five E. Kalimantan coal concessions

International coal producer Kangaroo Resources Limited (KRL) said on Friday that it is preparing to complete the acquisition of five coal concessions in East Kalimantan, a high quality coking coal concession owned by Kubah Indah, after successfully conducting due diligence.

The five coal concessions are respectively owned by Kubah Indah, Jawana, Borami, Mitra Bara Karsa (MBK) and Bara Pratama (BP.

?The completion of due diligence clears the way for drilling to commence at Kubah Indah, where the Company has an exploration target ranging from 100-140 million tonnes of coking coal for this project,? the company said.

The consideration for the five acquisitions, comprising 300 million Kangaroo shares, will be issued to the project vendors upon receipt of shareholder approval, it said.

Drilling programs at the concessions will be conducted in parallel with the ongoing ramp-up of production at KRL?s other Indonesian operations.

KRL has been working through these processes together with its Indonesian partners, legal representatives, technical consultants and other relevant advisors, the company said.

Upon the completion of the acquisitions, KRL's shares in both the MBK and BP concessions will be increased to 100 percent.

Both of the concessions are considered to be highly prospective as they have high-quality thermal coal deposits. KRL will be aiming to take them into production in the medium term.

"To date the prioritization of the coking coal production, particularly at the Mamahak Project, has delayed progress at MBK and BP, but KRL is still aiming to conduct the necessary work to bring these two thermal coal projects into production," the company said.

KRL managing director Mark O?Keeffe said the completion of due diligence on Kubah Indah and the other projects within the portfolio was another positive step forward for the company as it ramps up production in Indonesia.

?We will now move quickly towards the commencement of an initial exploration programme at Kubah Indah, and over the coming months we expect to be able to delineate a significant JORC resource,? he added (denny)