Kangaroo receives regulatory approval for deal with Bayan

By Ruli Setiawan

ASX-listed Kangaroo Resources Limited (KRL) announced on Friday that it had received a regulatory approval for its transaction with IDX-listed coal mining firm PT Bayan Resources Tbk for the sale of assets belonging to PT Sumber Aset Utama (SAU), a KRL subsidiary.

KRL also said it had issued a Notice of Meeting for general meeting of shareholders to be held on April 29, 2016) to seek shareholder approval for the transaction with Bayan.

On Dec. 23, 2015, KRL announced that it had entered into agreements with its strategic alliance partner and majority shareholder, Bayan, to allow the development of haul road and port infrastructure that will benefit both KRL and Bayan?s adjacent coal mining activities.The agreements are subject to certain conditions, including shareholder approval.

Under the agreement, SAU will sell certain currently unused infrastructure assets to Bayan for US$12 million Bayan will use those assets (in part) to build and operate a new haul road and upgrade, expand and operate the Senyiur port for use by Bayan and KRL

KRL?s subsidiaries will have access to the new haul road and newly upgraded Senyiur port at 30 percent of their available capacity (being up to potentially 9 million ton per annum (mtpa) if Bayan?s expansion plans are completed) on a ?take or pay? basis according to KRL?s forecasted requirements

KRL and Bayan have entered into a Strategic Agreement which provides a more formalized framework of cooperation and support to enable the parties? coal mining projects to be co-developed in order to maximize use of the infrastructure and allow both Bayan and KRL to optimize outputs and profitability from their respective projects.

SAU owns 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 (infrastructure assets).

The Infrastructure assets are not otherwise being used while the Pakar concessions continue through the licensing and permitting process.

The parties have agreed that it will be mutually beneficial for Bayan to acquire the infrastructure assets and give KRL access to the new haul road and upgraded Senyiur port.

Editing by Johannes Simbolon