Orpheus obtains exclusivity to acquire C. Kalimantan mining asset

By Ruli Setiawan

ASX-listed Orpheus Energy Limited and PT Mega Coal Indomine (Mega) negotiated an arrangement whereby Mega granted Orpheus exclusivity to acquire a mining business license in Tamiang Layang in Central Kalimantan (IUP), until 26 April 2013, a tenement with an exploration target of 13 -17 million tones.

In consideration for this exclusivity, Orpheus agreed to loan Mega A$1.3 million (Loan Amount) pursuant to the terms of a secured loan agreement (Loan Agreement) entered into on 5 April 2013, Orpheus said in a statement obtained on Tuesday.

The Loan Amount was used by Mega to hold as a deposit for the acquisition of the IUP and was to be repayable on 26 April 2013.

Following further negotiation between the parties, it was agreed that the exclusivity period would be extended until 31 May 2013 to allow Orpheus further time to determine whether it would proceed with the acquisition of the IUP.

As a consequence, the parties have entered into an Amendment and Restatement Deed amending the terms of the Loan Agreement to roll over the secured Loan Amount to 31 May 2013.

Editing by Reiner Simanjuntak