Polo eyeing Indonesian coal, iron ore JVs

London and Toronto-listed firm with interests in coal and iron ore Polo Resources Limited announced that it has executed two loan agreements with partners in Indonesia for the procurement of coking coal and iron ore opportunities in anticipation of possible joint venture arrangements should suitable projects be identified.

Polo has executed a binding convertible loan agreement with Polo IndoCoal Holdings Limited, under which it has agreed to advance up to US$3 million in the form of a convertible loan to fund due diligence and related project development costs in respect of coking coal opportunities in Indonesia. The due diligence and project development is being led by Polo's partner in Indonesia, Earth Coal Resources Limited.

In addition, the company is also pleased to announce that it has agreed identical terms with Earth Investment Group Pte. Ltd. for a convertible loan agreement with Polo IndoIron Holdings Limited.

Under the terms of the Iron Ore Loan Agreement, Polo has again agreed to advance up to $3 million in the form of a convertible loan to Polo IndoIron to fund due diligence and related project development costs in respect of iron ore opportunities in Indonesia. The due diligence and project development in relation to the potential iron ore projects is to be led by Earth Investment Group.

Under both deal, Polo will have right to convert the loan into 60 percent shares of Polo IndoCoal and Polo IndoIron.

The Earth Group is currently reviewing a number of potential coking coal and iron ore investment opportunities in Indonesia, the company said. (alex)