Indonesia-focused metallurgical coal company, Cokal, has completed the sale of its interest in PT Anugerah Alam Manuhing (AMM) for US$150 000 to PT Jinantra Karya Raya, an Indonesian company that owns tenements adjacent to AMM.
According to Cokal, the AMM tenements were considered “non-core” as they were located away from its core tenements in Central Kalimantan and were unlikely to contain metallurgical coal – which it the company’s core focus.
“It was therefore considered appropriate in the current climate to realise the value of AMM, reduce ongoing liabilities and to use the funds for working capital while the board pursues […] funding options,” the company said.
Cokal is currently 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 AMM tenements, PT Jinantra Karya Raya will also retain Cokal as a consultant on US$400 000 retainer, expiring in mid-June 2016.
“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 concluded.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/29032016/cokal-sells-amm-tenements-2016-474/