Challenger Deep Resources' wholly-owned subsidiary PT Bestindo Energy has entered into three separate Memorandums of Understanding which give it the exclusive right to purchase four separate coal projects in East Kalimantan.
Each of the MOU's provide Bestindo 30 days to purchase the shares of three separate private Indonesian companies which hold various rights related to the four projects.
Each of the projects is owned by the respective private company and all of the projects are in the Regency of Kutai.
The MOU's also provide for the subsequent execution of a Conditional Share Purchase Agreement (CSPA), which provides for staged payments of the purchase price over a period of four months in respect of one MOU and over a period of 24 months for the other two.
Pt Arni Bersaudara is the holder of two contiguous IUP Exploration permits covering 3039 and 2874 hectares in the District of Muara Kaman. The IUPs are about 40km north of the Mahakam River.
Pt Apriadi Bersaudara is holder of a KP PU (Mining Authorization for General Survey) covering 930 hectares (AP1), which is being converted to IUP Exploration in the District of Samboja and a SKIP (Exploration Permit Application) covering 3086 hectares in the District of Muara Kaman (AP2).
The AP1 project is 10km from the coast and close to an independent haul road and port loading facilities which are under construction. The AP2 project is about 45km north of the Mahakam River and in close proximity to the Arni Bersaudara projects.
CV Putri Etam is a private Indonesian company which is applying for an IUP Exploration and has successfully secured a Local Announcement letter from authorities. The application covers 100 hectares and is located in the Muara Badak district.
A program of due diligence on all of the projects is to start as soon as possible to verify the data provided and to confirm Challenger's exploration target parameters. The program will include surface reconnaissance and mapping, sampling and analysis in order to evaluate the potential of each property.
Challenger's execution of the CSPA's to acquire these projects will depend upon the results of the initial due diligence program in respect of each.
Challenger's president Ranjeet Sundher says, “The signing of these latest MOU's, reflects the culmination of many months of excellent work by our acquisition team.
“We are very pleased with the execution to date of our plan to assemble and advance a strong portfolio of coal exploration and development projects in East Kalimantan. Our team remains focused on the exploration of our current projects and the acquisition of new projects.”