Kangaroo Resources Limited (ASX:KRL) Updates on Acquisition of Direct Foreign Ownership of Pakar Coal Project Concessions
KRL, which has previously announced the acquisition of a 99 per cent interest in the Project from Bayan, is restructuring the ownership of the assets in line with the new Indonesian mining law introduced in 2009 which permits direct foreign ownership.
This further enhances KRL's ownership of the project, clearing the way for commercial development of this cornerstone asset to proceed.
The restructure has been effected by converting each of the five concession holding companies (with IUP licences) and one asset-holding company to Indonesian PMA companies (a foreign investment company) and transferring 99 per cent of the shares from Bayan to KRL.
The Pakar Coal Project is a cornerstone asset in KRL's Indonesian coal production strategy and the direct ownership will secure KRL's exposure to future cash flows to be generated by the Project, and complements KRL's existing portfolio of thermal and coking coal projects in Indonesia. KRL is currently in preliminary production at its Mamahak Coking Coal Project and is developing its GPK Project.
KRL's Managing Director, Mark O'Keefe said: "We are pleased to have completed the transfer of equity for the six companies thus far. We believe this will make a significant positive contribution and be instrumental in achieving our objectives for the Pakar Project.
"With direct ownership of the five Concessions and the asset holding company secured, it will provide the Company with the impetus to fully develop and commercialise the company's cornerstone asset."
ABOUT BAYAN RESOURCES
PT. Bayan Resources Tbk is a leading Indonesian-focused coal producer which is listed on the Indonesian Stock Exchange. Bayan produced approximately 11.9 million tonnes of coal in 2010 from six projects, making it one of Indonesia's largest coal producers. In addition, Bayan owns the Balikpapan Coal Terminal, one of Indonesia's largest coal terminals, as well as an innovative floating transfer station.
Bayan is committed to expanding its overall coal production and its association with Kangaroo as major shareholder. Bayan has the necessary resources, experience and expertise to help Kangaroo drive forward its Indonesian coal strategy.
Both Kangaroo and Bayan see many synergies in their two operating coal businesses in Indonesia and are seeking to take advantage of these as well as realise all available economies of scale.
About Kangaroo Resources Limited
Kangaroo Resources Limited (ASX:KRL) is an emerging international mining Company with eight coal projects in the East Kalimantan region of Indonesia.
The Company's projects host coking and thermal coal resources which will see KRL emerge as a significant Indonesian coal producer, with first production achieved in December 2009.
KRL is committed to building a sustainable mid-tier mining house, focusing on Indonesian coal and using the considerable experience and expertise of its exceptional in-country partners to fast track development and production.
The Company's medium term strategy entails vending in valuable new coal projects, while at the same time continuing to build production in the short term from up to three existing projects.
Kangaroo Resources Limited