South East Asia Resources raises funds for coking coal project
Tuesday, May 6 2014 - 08:33 AM WIB
ASX-listed South East Asia Resources Limited announced on Tuesday that it is in the process of completing a placement of 33,333,333 ordinary shares at $0.015 per share to raise $500,000 to finance its coking coal project in East Kalimantan
In addition, in relation to the bond subscription agreement with PA Broad Opportunity IV Limited (subscriber) for the provision of up to A$10 million by way of unsecured bonds, convertible into shares executed on Sept. 17, 2013, the company will lodged the notice of request for second tranche drawdown of $500,000
The net proceeds from the Placement and the second tranche will be used by the company to execute full production efforts of the coking coal project near Balikpapan, operated by PT Pola Andhika Realtor (PAR).
PT PAR Coking Coal project has secured IUP Production Licensing and has all required infrastructure in place for immediate mine production, including camp, mining equipment, haul road and processing crush facilities. The hauling road distance from the boundary of the PT PAR concession is 32 kilometers to the jetty facility (which has a port weight bridge and belt loading conveyor capacity of 1000Mt per hour). Loading of coal onto export coal vessels is estimated to take 10 hours.
The company has finalized an agreement to acquire and take over the mining contractor, mining equipment and workforce and undertake all mining direct. As part of the takeover, the company through its Indonesian operating entity PT UMES has commenced remobilization onsite for production commencement in May 2014.
The company has also completed preliminary agreements for the adjoining coal concession, which will provide continued production on completion of mining from PT PAR.
Domestic off-take arrangements have been finalized with steel mills, for the supply of coking coal, which will be barged from the port of Telen.
With this required working capital in place and the agreement to take over the production of coal, the company is expecting to announce first shipment of coking coal by June 2014.
Editing by Johannes Simbolon