Photo by: Reuters
PERTH (miningweekly.com) – Emerging energy resources company Pan Asia Corporation on Thursday flagged the possibility of divesting its current 75% interest in the TCM coal project, in Indonesia.
The company told shareholders that it was currently in advanced negotiations with a Singapore-based group regarding the sale of the TCM interest.
Subject to a successful due diligence, which would likely be completed by December 15, the parties could enter into a binding agreement to progress the transaction.
The TCM project currently had a mineral resource estimate of about 129.16-million tonnes, and was expected to deliver some 1.5-million tonnes a year of saleable coal product over a 30-year mine life.
Pan Asia has been working on a number of funding scenarios to bring the project to production, and the miner said on Thursday that while negotiations with the possible buyer were continuing, the company would remain focused on establishing a quicker and more cost-effective access to the coal seams, as well as completing outstanding permits required for the start of production.
Pan Asia on Thursday also placed about 24-million shares to the Tata Artha Group (TAG), at A$0.021 each, to raise A$504 000.
TAG has further committed to the placement of a further 48-million shares, in two tranches, at a similar price.
Following the issue of the additional tranches, in January and February respectively, Pan Asia would start a rights issue, at an offer price of A$0.021 a share.
The details of the rights issue would be confirmed at a later stage.