Magnus to float subsidiary?s shares to develop E. Kalimantan coal mine

Singapore Exchange-listed firm Magnus Energy Group Ltd. announced on Friday it planned to float shares of its Australian subsidiary Apac Coal Limited at the Australian Stock Exchange (ASX) mid-2008.

The company said it would invite up to 75 million new shares at an issue price of A$0.20 per share. The proceeds raised from the IPO will be used predominantly to fund the development of APAC?s coal assets in Indonesia and to provide it with working capital, the company said.

The company said it had lodged prospectus to the ASX

After obtaining approval form the ASX Apac will acquire 100 percent shares of PT Batubaraselaras Sapta for A$40 million, payable by 200 million of Apac new shares. Batubaraselaras is Magnus? indirect subsidiary through its 72 percent ownership in PT Deefu Indonesia Chemical, which in turn controls 95 percent shares of Batubaraselaras.

Batubaraselaras in the coal contract of work concession (CCOW)holder located in Pasir regency, East Kalimantan that covers an area of approximately 68,360 hectares. The 30-year concession was granted in 1997. Batubaraselaras had entered into the Exploration Period, which was extended from 24 December 2005 till 4 February 2009.

Based on raw coal analysis carried out in two potentially economic coal seams within 8.9 km2, approximately 1.3% of the CCOW area, the indicated and inferred coal reserves are approximately 5.12 million tonnes and the calorific value of the coal samples averaged 5,366 kcal/kg, the company said. (alex)