Killara says COPA fails to make advance payment by due date
Monday, December 2 2013 - 01:01 AM WIB
ASX-listed Killara Resources announced Monday that Coal Operations & Assets PTE Ltd (COPA) has failed to make an advance payment of US$500,000 by the due date as agreed under a coal sale and purchase deal.
COPA signed on October 24, 2013 an agreement to become the off taker for 100 percent of coal from Killara Resources? East Kalimantan miner PT Borneo Emas Hitam. COPA was supposed to make an advance payment by November 21, but had missed the first deadline and sought to extend it to November 30.
?Furthermore COPA has requested an additional two weeks to make the initial payment,? Killara said.
?Killara has advised COPA that the payment terms have not been complied with and accordingly the exclusivity given to COPA has ceased. Killara is now free to engage with other potential off takers in respect of this project,? it added.
The directors and management will explore alternatives in respect of commencing coal production at this project as soon as possible, Killara said in a statement received Monday.
Editing by Reiner Simanjuntak