Sakari to acquire 6 coal mines in RI
Monday, August 13 2012 - 02:43 AM WIB
Singapore-listed Sakari Resources Limited said that it has signed a Heads of Agreement (HOA) to acquire a 100 percent interest in up to six IUPs located some 30km to the north of Sakari?s existing Jembayan Mine in East Kalimantan.
The six mines area covers over 29,000 hectares.
Under the HOA, Sakari will undertake an exploration program and due diligence review and, if the results from these activities prove satisfactory to Sakari, the acquisition will proceed to completion.
Drilling of the properties will start in August 2012 with preliminary results expected towards the end of the year.
It said that Sakari has paid an initial, refundable cash deposit of US$2 million.
"If the transaction moves to completion, Sakari will pay an additional US$2 million in cash plus an equity component, which will be determined by reference to the results from the drilling programme and the number of IUPs to be acquired," the company said.
The total equity consideration is capped at US$60 million in value, should Sakari decide to acquire an interest in all the IUPs.
Editing by Adianto P. Simamora