THE BOURSE WHISPERER: Kangaroo Resources has executed the deeds of transfer with Indonesian coal conglomerate PT Bayan Resources.
The execution of the deeds gives Kangaroo direct foreign ownership of five key concessions and one asset-holding company at the Pakar thermal coal project in Kalimantan, Indonesia.
Kangaroo has previously announced the acquisition of a 99 per cent interest in the project from Bayan.
Kangaroo Resources project location map – East Kalimantan, Indonesia. Source: Company announcement
It is restructuring the ownership in line with new Indonesian mining laws, introduced in 2009, which permit direct foreign ownership.
The company said its ownership of the project will be enhanced by the singing as it will clear the way for commercial development of the project 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 Kangaroo.
“We are pleased to have completed the transfer of equity for the six companies thus far,” Kangaroo Resources managing director Mark O’Keefe said in the company’s announcement to the Australian Securities Exchange.
“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.”
Kangaroo said the Pakar coal project is a cornerstone to its Indonesian coal production strategy and having direct ownership will secure the company’s exposure to future cash flows to be generated by the project.
The company also said it complements its existing portfolio of thermal and coking coal projects in Indonesia.
Kangaroo Resources is currently in preliminary production at its Mamahak coking coal project and is developing its GPK project.