PHI Energy completes purchase of Indonesian coal assets

PHI Energy Corporation (PEC), a minority owned subsidiary of Nevada-based firm PHI Group, Inc. in partnership with AXN Group LLC, announced Tuesday that it has closed a coal asset purchase agreement with PT Dian Anugrah Pratama (DAP), an Indonesian corporation with headquarters in Jakarta.

PHI Energy issued promissory notes for US$3,000,000 and 47 million shares of common stock of the company, valued at $1.00 per share, in exchange for total estimated mineable coal reserves of 33 million tonnes located in West Sumatra, Kampar and South Kalimantan. The company did not give further detail about the mines? location.

The pre-production estimated value of the reserves is approximately $85,000,000 whereas current market price of steam coal GCV6300-6100 FOB Indonesia is approximately $ 80 per metric ton, claimed the company.

As part of the agreement, PEC will register 12% of its issued and outstanding common stock with the Securities and Exchange Commission for the benefits of DAP, AXNG, PHI Group and their shareholders.(romel)