Cokal Limited has entered into an agreement to acquire 75% of Indonesian company PT Tambung Benua Alam Raya (TBAR) which holds tenements adjoining its Bumi Barito Mineral Coal Project (BBM). This is another major step for Cokal which is on track to begin construction of BBM mine in Central Kalimantan later this year.
Cokal’s executive chairman Peter Lynch says, “Since the start of the year, Cokal has achieved three important milestones towards obtaining the necessary approvals for BBM, having completed and submitted our EIS, together with the applications to upgrade the mining licence and the forestry permit.
“The TBAR acquisition represents a significant opportunity for Cokal to achieve further exploration success which would provide the company with ability to leverage off the infrastructure planned for development of BBM.
“A Share Sale and Purchase Agreement has been executed with the owners of TBAR, which adjoins the southern boundary of BBM. Under the agreement, Cokal will acquire 75% of the equity of PT Tambang Benua Alam Raya and local Indonesian partners will hold the remaining 25% of the equity.”
The TBAR Exploration Licence (IUP), which is on the Clean and Clear List, is an exploration area of 18,850 hectares. More than 80% of the lease is available for exploration subject to the issuance of an exploration forestry permit.
Cokal’s executive director Pat Hanna says, “We are excited to have secured this area as it almost doubles the ground in the BBM area available for our exploration activities, in the area where we have achieved the greatest exploration success. In just the eastern block of BBM, which represents about 40% of the total area, Cokal has reported an exploration target of 200 to 350 million tonnes, as well as an additional JORC resource of 77 million inferred and indicated tonnes.”
Cokal will now undertake detailed surface mapping of the TBAR IUP based on its knowledge of the coal seams in BBM to identify follow up drill targets.
Meantime, the company has achieved another major milestone at its Borneo Bara Prima (BBP) metallurgical coal project, securing a forestry exploration permit from the Indonesian government. The permit will allow construction of access tracks at the site, and also see larger drills complete the drill program for a JORC-compliant resource estimate.
“The next step forward for BBP is to submit the EIS and then apply to have the mining license upgraded to allow construction to commence,” says Peter Lynch.