PERTH (miningweekly.com) – Asia’s largest diversified commodities group Noble Group has taken a 5.34% stake in ASX-listed Pan Asia, worth nearly $500 000.
Pan Asia told shareholders on Thursday that it had entered into a share subscription agreement with Noble, under which the Singapore-listed Noble would subscribe for seven-million shares, at a price of 7c a share.
“We are very pleased to further strengthen the ties between the companies,” said Pan Asia CEO Alan Hopkins.
“We have shared a motivation to expedite the advancement of production at PT Transcoal Minergy, and to pursue additional growth opportunities.”
PT Transcoal Minergy is developing a thermal coal project in South Kalimantan, and is 75% held by Pan Asia.
Hopkins said on Thursday that Noble had a strong understanding of, and presence in the Indonesian coal industry, and could provide Pan Asia with invaluable support in delivering the PT Transcoal Minergy project.
Noble had been appointed as a strategic adviser to PT Transcoal Minergy and would assist the company in coal sales agreements direct to end-customers, as well as with raising capital to finance the development of the thermal coal project.
The share subscription agreement was subject to a number of conditions, including a waiver from the ASX, and Noble’s right to appoint an employee as a director of the Pan Asia board.
Shares issued to Noble would also be subject to a voluntary escrow for a period of nine months.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE