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Thursday, 09 May 13
KILLARA AUSTRALIA ACQUIRES 80% INTEREST IN BORNEO EMAS HITAM


COALspot.com - Killara Resources has announced that, the company has signed a binding MoU to acquire an 80% equity interest in PT. Borneo Emas Hitam (BEH). PT Borneo Emas Hitam (BEH) is a coal producer in East Kalimantan in Indonesia and currently sells its entire production to an international buyer.

According to company’s website, Killara Resources (ASX Code: KRA) is a minerals explorer specializing in energy and other resources in Indonesia, with an emphasis on sustainable mining practices when and if projects are developed in conjunction with close ongoing community engagement.

“The transaction moves Killara from an explore to a producer and represents an exciting corporate transition for the company, an announcement to ASX said.

Killara will pay, pending due diligence, a minimum of US$ 2.2 million for an 80% equity interest in BEH and its wholly-owned mining concession, which is located in East Kalimantan, Indonesia, the note from company said. Should an independent technical assessment of the concession by Killara establish a mineable coal deposit of greater than 733,333 tonnes, the company will pay $3.00 for each additional tonne. 

At the same time, the acquisition enables the company to become cash flow positive and be operating its own mining activities within an estimated three months, the announcement from company said.



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