VWM, SEAE sign share purchase deal on coal project
Tuesday, July 31 2012 - 02:47 AM WIB
ASX-listed exploration company, Victory West Metals Ltd (VWM) announced that the company has signed share purchase agreement to acquire 100 percent of South East Asia Energy Resources Pte Ltd (SEAE) in the second quarter.
VWM which is also listed on Frankfurt Stock Exchange with its Malala Molybdenum Project in the Toli Toli region in northrern Sulawesi said that the transaction with SEAS involved in an interest in Penajam East Coal project in East Kalimantan.
SEAE is a Singapore company which currently holds interests in a number of thermal and coking coal projects in Indonesia, including Penajam East thermal coal project.
Penajam East coal project consists of two concessions located in the Penajam Regency of East Kalimantan. The project is within the Kutai Basin and includes a haul road and port facilities.
The company in its quarterly report said that SEAE?s team will combine with VWM?s management team to identify potential mineral, thermal and coking coal assets, review existing assets, and conduct full asset due diligence with an aim of securing significant JORC Code compliant resources for VWM.
It said that the acquisition will be satisfied by 330 million fully paid shares and 33 million VWM options and a cash payment of $750,000.
?Agreed milestones are in place for full payment of consideration. The company and SEAE continue to evaluate all funding options in connection with the project,? it said.
Editing by Adianto P. Simamora