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Cokal receives extra funds for BBM project

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World Coal,

Cokal has secured US$5.65 million of funding to progress its BBM project in Central Kalimantan, the company said in a statement. The funds will be provided by Platinum Partners, a New York based hedge fund, and brings its total investment in the project to US$9.15 million.

Platinum agreed to the latest loan “due to the significant progress being made with both the BBM project and the finalisation of the BBM financing package,” Cokal said in its statement. The new funds will be used to progress the detailed engineering and final design work on the project and to complete the preparation work necessary to start construction onsite.

Repayment of the total loan amount is now repayable within six months of receiving the additional loan funds associated with the proposed BBM funding package. This includes the grant of 100 million warrants with an exercise price of AU$0.20 and an exercise period of four years from the gate of grant.

“Cokal will grant 15 million of these options following drawdown of the additional load,” the company said. “The intentional is that the balance 85 million options will, subject to shareholder approval, be granted once the BBC project finance is finalized.”

The BBM coal project is located in Central Kalimantan, Indonesia, in the prospective metallurgical Upper Barito Coal Basin. The project area covers 14,980 ha and is adjacent to BHP Billiton’s Indomet Coal Joloi project.

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