Cokal Limited has completed the sale of its 75% interest in PT Anugerah Alam Manuhing (AAM) for US$150,000 to PT Jinantra Karya Raya, an Indonesian company that owns tenements adjacent to AMM.
Cokal said the AMM tenements are considered non-core as they are a considerable distance west from its core tenements in Central Kalimantan.
While PT AAM contains high calorific value thermal coal, it contains little possibility of any discovery of contain metallurgical coal, which is Cokal’s core focus.
“It was therefore considered appropriate in the current climate to realise the value of AAM, reduce ongoing liabilities and to use the funds for working capital while the board pursues other funding options,” the company said.
Cokal is pursuing three funding options, including a transaction resulting in an Indonesian listing, a merger with another ASX-listed company and a financing IPO on the Shanghai stock exchange.
In addition to purchasing the AAM tenements, PT Jinantra Karya Raya will also retain Cokal as a consultant on US$400,000 retainer, expiring in mid-June 2016. This is as a result of the experience built up over the past five years by Cokal in the Indonesian mining regulatory progress with Cokal’s BBM coal project being the only mining project to be issued a new Production Forestry Borrow and Use Permit approval since the new process was announced by the Indonesian Government on January 26, 2015.
“Cokal is glad to be working with PT Jinantra Karya Raya and its principals to achieve their goals in receiving the necessary regulatory approvals and the most efficient route to production for the growing interests in Indonesia,” the company said.