SouthGobi closes sale of Mamahak Coal Project to Kangaroo
Thursday, December 24 2009 - 12:07 AM WIB
Canadian firm SouthGobi Energy Resources Ltd. announced Wednesday that it has closed the sale of its Mamahak coal project to Australian firm Kangaroo Resources Limited.
SouthGobi earlier this month agreed to sell its effective 85% interest in the Mamahak coal project in East Kalimantan to Kangaroo for US$1 million in cash and 50 million shares of Kangaroo.
On October 12, 2009, SouthGobi announced that it had suspended further development work at Mamahak pending a more detailed operational review. Following various approaches and with the company's strategic focus on Mongolia, it was determined that the project could be best developed and operated by an Indonesian focused coal mining company.
Kangaroo is a coal company focused on the development of a series of coal projects in East Kalimantan, Indonesia. It is listed on the Australian Securities Exchange. (alex)