Australian Firm Exalt to Enter Indonesian Coal Industry
The Jakarta Globe
Australian energy exploration company Exalt Resources announced on Wednesday that it has signed a sales and purchase agreement to acquire 100 percent of the issued capital of Singapore-incorporated coal investment firm Odni Holdings (Pte.) Ltd.
The acquisition will grant Exalt, which currently has two New South Wales-based gold and base metal exploration projects, the ability to investigate and acquire all of, or an equity interest in, a number of prospective coal mining projects in Kalimantan, Sumatra and West Papua, the company said in a press release.
“The proposed acquisition will provide Exalt with a unique opportunity to investigate and secure access to a huge bank of quality exploration concessions on known coal formations, close to infrastructure and the world’s largest coal markets,” said Barry Tudor, the CEO and managing director of Exalt.
The Odni acquisition is consistent with Exalt’s strategy to become a significant mid-tier coal producer, the company said in the press release.
It said the company’s objective is to build a substantial and diverse portfolio of Indonesian coal assets, from early stage exploration to coal production.
“We have focused on Indonesia because we believe it offers the best value opportunity for coal sector investors at this point in time,” Tudor added.
He said the company, through an intensive and focused exploration program, aims at achieving a large JORC (Joint Ore Reserves Committee) compliant resource in the near future.
He said that Exalt would bring its development expertise while leveraging its strong local partners and connections.
The initial projects, the release said, extend over an area of about 250,000 hectares in South Sumatra and is composed of 11 concessions.
Exalt will also acquire the rights to acquire a concession in East Kalimantan and another in Central Kalimantan, both over known coal formations.
Completion of the sale and purchase agreement is contingent upon due diligence, shareholder approval, capital raising of at least $10 million and receipt of all relevant approvals, including from the Australian Securities Exchange.
Exalt must raise A$20 million ($20.5 million) in capital, to provide funds for preliminary exploration, project acquisition, cost reimbursement and working capital.