Cokal Coal confirms takeover reports
Global metallurgical coal group Cokal Limited has confirmed reports that it has been in discussions with Singapore’s Blumont Group about a US$ 77 million funding package for the BBM coal project, as well as a potential AU$ 124 million takeover offer.
While the takeover discussions were close to completion, movements in Blumont’s share price had damaged the commercial terms of the proposal and further discussions are now taking place to restructure the financing and potential takeover offer.
The main concern is to build the mine and associated infrastructure for the BBM project, in order to achieve first production next year. As a result, Blumont has offered a loan facility of up to US$ 8 million to continue the development work. US$ 4 million is due by 1 November 2013 with the balance on mutual agreement, and the loan is repayable within 3 years
BBM coal project
The BBM coal project, situated in Central Kalimantan, Indonesia in the prospective metallurgical Upper Barito Coal Basin, covers 15,000 ha.
BBM currently has a Joint Ore Reserves Committee (JORC) Resource of 77 million t of coal in multiple seams.
Cokal Limited is completing definitive studies and obtaining the necessary approvals with the aim of beginning construction in late 2013, which would see first production occur in the first half of 2014.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/08102013/cokal_coal_confirms_takeover_reports_105/
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