Straits completes Jembayan coal mine acquisition

Singapore Exchange-listed mining firm Straits Asia Resources Limited said on Friday that it had completed the agreements to acquire the shares of PT Separi Energi and the offtake rights to coal from its mines.

Straits has agreed to buy East Kalimantan coal miner Jembayan for US$350 million, payable with $275 million cash and 6.9 % of Straits Asia?s enlarged issued share capital.

The Jembayan mine is expected to produce 4 million tonnes of coal this year.

The cash payment is funded with the proceed from the placement of 94,485,000 new ordinary shares and the drawdown of $230 million under the 364-day Bridge Facility with Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.(alex)