ASX-listed Palace Resources has received a legal due diligence report on the permit holder and title of the West Sumatra coal project it wishes to acquire.
The report confirms that the permit holder with which Palace has executed a letter of intent has obtained a mining licence for operation and production (IUP) of coal at Painan in the Regency of Pesisir Selatan in West Sumatra. The IUP gives the permit holder the right to conduct the activities of construction, hauling, sale and refining in the mining area.
It ha also been confirmed that the IUP is listed with the status ‘clear and clean’ on the ‘List of Clean and Clean IUPs’ published by the Directorate General of Mineral and Coal and that the IUP is therefore deemed valid.
With the positive news of the due diligence report along with the undertaking of the OTCQX process, the Board of Palace is excited with the future of the company.
Palace’s managing director Nicholas Clark says, “This is an exciting result for Palace Resources and shows that it is not only committed to the region but serious in commencing exploration projects and later production with as minimal risk to the company and its shareholders by undertaking and continuing due diligence tasks and building on already strong in-country connections.”
The company confirms that a draft Memorandum of Understanding has been provided to the permit holder for consideration. This formalizes the terms agreed to under the initial letter of intent.