Cokal Limited and Platinum Partners are proceeding with implementation plans to finalise the royalty agreement covering the BBM Coking Coal Project in Central Kalimantan, Indonesia.
The Receiver of the Platinum Partners Credit Opportunities Master Fund and the Liquidator of the Platinum Partners Value Arbitrage Fund have advised Cokal that they have completed their due diligence in respect of the royalty agreement and are satisfied with the results. Accordingly the due diligence precondition in this agreement has now been satisfied.
Cokal will now progress a shareholders meeting to approve this transaction and associated matters.
The funding secured for the development of the BBM PCI Coal mine, as detailed by Cokal in May, and the commencement of production from this project will fulfil the preconditions for commercial production required for the Debt to Royalty agreement to come into effect
Meantime, Cokal has commissioned an independent reserves report for BBM in accordance with the 2012 version of the JORC Code. Following this report, Cokal has also commissioned an independent valuation of Cokal’s assets in accordance with the VALMIN Code. Both reports are expected to be completed this month.
The company’s chairman Domenic Martino said, “This is another positive step forward for the company in achieving its goal of building an export metallurgical coal mining operation at the BBM project and the company can now confidently move forward with the aim to commence production by the end of this year.”
Cokal Limited is an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence. Cokal has interests in four projects in Central Kalimantan and one project, which holds three exploration licences, in West Kalimantan, Indonesia considered prospective for metallurgical coal.