Australia-listed company Kangaroo Resources Limited today announced a completion of due diligence relating to the proposed acquisition of Pakar Thermal Coal Project.
Kangaroo Resources aims to buy the project from coal miner PT Bayan Resources Tbk (BYAN), which is controlled by two billionaries Dato' Low Tuck Kwong and Jenny Quantero. at A$277 million or US$280.97 million.
All payable will be in Kangaroo shares. Following the coal project acquisition, Bayan Resources will emerge as controlling shareholder in Kangaroo Resources with an approximate 57% holding in Kangaroo. This also includes a US$18 million injection into Kangaroo Resources to further boost its working capital.
Pakar Coal Project is a fully-developed, integrated thermal coal operation in East Kalimantan. The project is ready for production in 2011.
The acquisition agreement is subject to due diligence, which will be carried out over the next 30 days and Kangaroo obtaining shareholder and regulatory approval.
Together with Kangaroo's other Indonesian coal assets, including the 100% owned Mamahak Coking Coal Project, which is currently producting, the Tanur Jaya Thermal Coal Project and the GPK Thermal Coal Project. This acquisition will reposition Kangaroo Resources as world-scale Indonesian coal producer. Kangaroo Resources has been earning a 49% interest in Tanur Jaya concession (one of the nine concession within Pakar Project) over the past 12 months and this position will now be incorpotated into the overall 99% interest that Kangaroo Resources is acquiring in Pakar Project.
Disclosure: No position at the stock mentioned above.
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