Killara plans to acquire W. Papua coal mines

By Ruly Setiawan

Australia-listed firm Killara Resources Limited announced Wednesday that it has executed Letter of Offer Agreements (LOO) with an Indonesian company to acquire an interest in two coal concessions in the West Papua province.

The parties to the LOO?s have agreed in principle to commercial terms under which Killara can acquire a 65% equity interest in the concessions, with vendor payments linked to project specific milestones.

Full commercial terms of the acquisition are to be formally documented in a Memorandum of Understanding, which will provide Killara with a due diligence period of up to six months from the execution of the MoU.

Editing by Denny Tarigan