Magnus Energy completes acquisition of Batubara Selaras coal mine

Singaporean firm Magnus Energy Group Ltd announced Tuesday that its wholly-owned subsidiary Antig Investments Pte Ltd had completed the payment of US$3 million to acquire 72 percent share in PT Deefu Chemical Indonesia.

Magnus said Antig and the vendors had agreed to waive the condition precedent ?Antig being satisfied on or before the Cut-Off Date (May 31, 2006) that the Site of approximately 2,000 hectares at the southern end of the lower part of the Concession may produce between 10,000 and 30,000 tons per month of coal that are of a quality satisfactory to Antig? in order for Antig to perform a professional mine planning instead of assuming the current mine situation in place.

?In view of this waiver, Antig and the Vendors have also agreed to defer the payment of US$0.2 million out of the US$3.2 million Completion Payment, which is payable to Vendor 1 (Tjong Very Sumito), to a date falling 12 months from the Completion Date, 13 June 2006,? Magnus said.

PT Deefu is the owner of 95 percent shares in PT Batubara Selaras Sapta, a third generation Coal Contract of Work (CCoW) holder with concession in Pasir regency, East Kalimantan,

Magnus has said one of the concession prospective areas was estimated to contain around 500 million tons of inferred and indicated coal reserves with calorific value ranged from 6,000 to 7,000 Kcal/kg. (Robert)