Palace Resources has signed a conditional and binding MOU with the shareholders of Lumpo Resources Pte Ltd, a company incorporated in Singapore, to acquire all of the issued shares of the company. Lumpo has entered into an MOU with Indonesian company PT Tambang Batubara Lumpo to acquire a 65% joint venture interest in its coal project in Western Sumatra.
ASX-listed Palace believes the acquisition will bolster its aggressive exploration drive into Indonesia and will assist its continuing efforts to develop key partnerships in the region.
The Sumatran project covers a licence area of about 922.7 hectares. Palace recently completed a preliminary site visit and is currently mobilizing an exploration team for the project. The team will include a competent person for the purpose of the JORC Code, who will be instructed to undertake work to prove up the project’s resource to JORC-compliant standard.
Palace has completed legal due diligence on the project which confirms that its IUP is valid in accordance with Indonesian laws. It is now focused on undertaking technical due diligence to verify the information that has be provided by PT Tambang Batubara Lumpo.