Global coal group Cokal has sold 40 million fully paid ordinary shares to UK-based global funds manager Blackrock, netting $20 million for its two year exploration program at the Bumi Barito Mineral (BBM) project.
“Cokal is continuing to explore its BBM project and expects to define an initial JORC compliant resource soon,” says Cokal executive chairman Peter Lynch.
“The placement to Blackrock will take our cash resources to Aus$34 million which represents sufficient funds to deliver all of Cokal’s planned exploration and development programs for the next 18 months to two years.
“Cokal aims to become a producer as early as the first half of 2013, while continuing to grow its portfolio of metallurgical coal projects in highly prospective Indonesian region of Central Kalimantan,” he says.
The placement is being completed in two stages, with the second tranche planned to be paid in the first few weeks of 2012.
Peter Lynch says the company is pleased to have secured the support of a shareholder with a reputation for long term growth orientated investments.
Cokal has interests in four projects in central Kalimantan which is considered prospective for metallurgical coal.
BBM covers an area of about 20,000 hectares next to BHP Billiton’s Juloi tenement which straddles the Barito River on the island of Borneo. Three drill rigs have helped to accelerate the exploration efforts at the site.
In July 2011 the Brisbane-based company confirmed high quality premium metallurgical coal at the project. Initial results from four fully cored boreholes and one channel sample show the coal quality ranges from premium coking coal to ultra low volatile PCI.