Polo Resources subsidiary Polo Investments Limited has invested Sin$5 million into Indonesian coal through a convertible loan deal with Universal Coal Resources. This will result in Polo securing a coal mining concession in South Kalimantan.
Universal, a company incorporated in Singapore, has entered into a conditional agreement to acquire an indirect 75% interest in PT Transcoal Minergy Coal (TCM), a company incorporated in Indonesia, from a subsidiary of ASX-listed Pan Asia Corporation.
TCM is the owner of a Production Operation Mining Business Licence in respect of a mining concession area in Mantewe District, Tanah Bumbu Regency.
The TCM project comprises 3440 hectares and has a production permit to April 2028. TCM is focused on developing a two million tonnes per annum underground mine delivering a high quality bituminous coal saleable product of some 6200 kcal/kg specific energy.
The current JORC measured, indicated and inferred resource of 129 million tonnes has been derived from the southern area of the concession and there is potential to upgrade and increase the resource base through drilling the northern area.
Further drilling and a full final feasibility study are required to be completed and forestry approval obtained prior to commencement of mine development.
The TCM Coal Project will utilise existing coal transportation infrastructure including a 50km haul road to the river port at Batulicin, a major coal shipping centre.
Universal wants to list in Singapore and the loan note entitles Polo to convert the principal outstanding plus any accrued interest into not less than 20% of Universal up to 18 months from drawdown, or earlier upon the receipt of approval in principle to list.