Victory West Metals has signed a binding agreement to acquire South East Asia Energy Resources (SEAE). The acquisition will be completed in three milestones and is conditional upon due diligence and shareholder approval.

Victory West will issue 330 million shares and 33 million options in tranches as well as a $750,000 cash payment in return for the takeover while also assuming SEAE’s $1.6 million liabilities.

Singaporean company SEAE holds interests in a number of Indonesian thermal and coking coal projects, including the Penajam East Thermal Coal Project which consists of two concessions in Penajam Regency of East Kalimantan. The 185 hectare project is within Kutai Basin and includes a haul road and port facilities. It hosts five open mining pits that are ready for recommissioning and have been subject to previous mining and exploration which should advance the development process.

As part of the acquisition process, Victory West will also make loans available to SEAE to secure the rights of additional resource opportunities. SEAE needs to achieve a JORC- compliant inferred resource of between 50 and 100 million tonnes while achieving annual production of 2.4 million tonnes within the next three years to be paid all agreed terms.

If the acquisition is approved, SEAE will team with the existing Victory West management team for the purpose of identifying new mining concession opportunities, undertaking due diligence, certifying projects to JORC, mine planning, management and production, and coal marketing and sales.

Victory West is acquiring majority interests in world-class metals deposits, including a 95% interest in the Malala Molybdenum project on Sulawesi.

www.victorywest.com.au

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