Palace Resources to acquire W. Sumatra coal mine

Palace Resources Limited announced Thursday that it has signed a conditional and binding MOU with the shareholders of Lumpo Resources Pte Ltd , a company incorporated in Singapore, to acquire all of the issued shares in the capital of Lumpo (Acquisition).

Lumpo has entered into a conditional and binding MOU with PT Tambang Batubara Lumpo (TBL), a company incorporated in Indonesia, to acquire a 65% joint venture interest (JV Interest) in its coal project in Western Sumatra.

Palace believes that the Acquisition will bolster the Company?s aggressive exploration drive into Indonesia and will assist its continuing efforts to develop key partnerships in the region.

The Sumatran Project covers a total licence area of approximately 922.70 hectares.

Palace Resources recently completed a preliminary site visit and is currently in the process of mobilizing an exploration team for the Sumatran Project.

Under the Acquisition, Palace will acquire all of the issued capital of Lumpo for the following consideration: 75,000,000 fully paid ordinary shares in the capital of Palace (Shares); Reimbursement of Lumpo?s investment in the project up to a maximum of US$250,000; and A royalty of US$10/tonne from production. (romel)