Pepcap Ventures to acquire controlling ownership in Bengkulu coal assets
Friday, July 12 2013 - 01:45 AM WIB
TSX-listed capital pool company Pepcap Ventures Inc has signed a letter of intent (LOI) with Hong Kong?s JMC Corporation, under which the latter would facilitate the former to acquire a 51 percent controlling stake in Asia Mining Management BV, which owns three coal concessions in Bengkulu, Indonesia.
The company said in a statement obtained Thursday that the sale price is expected to be approximately C$4,170,000 payable in common shares of Pepcap at a deemed value of $0.10 per common share.
Under the terms of the LOI, Pepcap will own a controlling interest in mining concessions in Bengkulu consisting of two blocks, held by PT Krida Darma Andika, owned by Asia Mining.
The properties consist of 3 coal concessions that are located in Napal Putih and Putri Hijau districts of North Bengkulu Regency of Bengkulu Province, Indonesia. The Viking coal project divides 3 coal concessions into 2 coal blocks:
- Block I (1,907 Ha) consists of 2 IUPs for 650 Ha and 1,307 Ha, located in Napal Putih district.
- Block II (7,236 Ha) consist of 1 IUP, located in Putri Hijau district.
"We are very pleased with this transaction as it will allow Pepcap Ventures to pursue its planned growth strategy in the natural resources sector", stated Clark Swanson, Chairman of Pepcap Ventures, Inc. He continued, "We are also fortunate to have attracted a wonderful group of high calibre mining executives to help aid with this endeavor."
The transaction is subject to the approval of the stock exchange, the company said.
Editing by Reiner Simanjuntak