Southern Arc sells interest in Taliwang project

By Ruli Setiawan

Southern Arc Minerals announced on Friday that it had agreed to sell its interest in the Taliwang project in return for cash and shares in the acquiring company, thereby retaining upside potential and financial flexibility for Southern Arc shareholders as the new owner advances its portfolio of projects.

?On December 13 Southern Arc?s board of directors announced the conditional acceptance of an offer for the Taliwang project,? said John Proust, Chairman and Chief Executive Officer of Southern Arc.

?This arrangement with Coke Resources meets our objectives of increasing the company?s treasury and allowing Southern Arc to focus its time and resources on its priority projects,? he added.

Southern Arc?s 90 percent share in the Taliwang project (remaining 10% held by the West Sumbawa Regency Government) will be sold to Coke Resources Limited (Coke). In consideration for Coke purchasing 90 percent of the Taliwang project, Southern Arc will receive US$500,000 and 15 million shares of Coke.

But the company stated that the transaction was contingent on Coke completing its initial public offering on the Australian Stock Exchange. Coke anticipates issuing up to 21,000,000 shares at A$0.20 per share. With 15 million shares, Southern Arc will own approximately 8 percent of the company. The shares will be held in escrow for a period of six months from the date Coke lists on the Australian Stock Exchange, after which Southern Arc may freely trade the shares.

Taliwang will be one of two projects in Coke Resources? portfolio. Coke Resources is an Australian-based exploration company founded in February 2011 to pursue opportunities in Indonesia?s mining sector. Coke?s board of directors and senior executives have a broad range of expertise in the minerals exploration industry, with extensive experience and business relationships in Indonesia.

The company?s PT Cristian Eka Pratama (Cristian) project is a long-life thermal coal project with established infrastructure in place, located 15km from the Mahakam River in East Kalimantan.

?Southern Arc?s investment in Coke Resources brings new opportunities to the company. Through Coke Resources we have exposure to two promising projects. We look forward to seeing progress at both the Taliwang and Cristian projects, yet have maintained financial flexibility for Southern Arc?s shareholders with a liquid, public-company investment,? Proust added.

Editing by Benget Besalicto Tnb.