Killara acquires 80% stake in BEH

By Puspita Maylana Devi

ASX-listed Killara Resources reported on Thursday it has signed a binding memorandum of understanding (MoU) to acquire an 80 percent equity interest in PT Borneo Emas Hitam (BEH), a coal producer that sells its entire output to an internationally recognized buyer.

The transaction moves Killara from an explorer to a producer and represents an exciting corporate transition for the company.

Pending a favorable completion of its due diligence, Killara will pay a minimum of $2.2 million for an 80 percent equity interest in BEH and its wholly-owned mining concession, which is located in East Kalimantan.

Should an independent technical assessment of the concession by Killara establish a mineable coal deposit of greater than 733,333 tons, the company will pay $3.00 for each additional ton.

This transaction underscores the board?s strategy of establishing an Indonesian coal focused business and, more importantly, illustrates the benefits of partnering with major shareholder the Zulkarnaen family to yield immediate strategic benefits to Killara.

Editing by Dadan Wijaksana