Pan Asia in talks with investors for possible sale of TCM project

By Romel S. Gurky

ASX-listed Pan Asia Corporation Limited said Thursday it was continuing to advance negotiations with Asian groups for the possible sale or funding of its 75 percent interest in the TCM coal project in South Kalimantan.

?These negotiations are continuing, with the company expecting them to be concluded in the coming quarters,? Pan Asia said in a statement.

A successful completion of such an arrangement could see the asset rerated with the company also retaining an interest funded to production.

Elsewhere, Pan Asia said the company continued its activity on the TCM project during the second quarter of this year including discussions with Chinese underground mining contractors with specific capability in similar rock conditions, and progressed outstanding permitting and access arrangements.

Pan Asia CEO Alan Hopkins said: ?During this quarter the company focused on strengthening its financial position while discussions continued with potential development partners. With the rights issue fully underwritten, it underpins the next stage for the company?s growth as it moves towards development of its flagship high CV thermal coal project (TCM).?

Pan Asia announced July 16 the rights issue plan on July 16 to raise an estimated proceeds of US$1.6 million to help fund the TCM coal project.

Editing by Reiner Simanjuntak