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Monday, 23 August 10
NOBLE RESOURCES AND PAN ASIA INK MAJOR COAL DEAL


Pan Asia Corporation Limited has, via Innovation West Pty Ltd, entered into a binding coal purchase & finance agreement with Noble Resources Pte Ltd.

Noble has agreed to purchase 4.8 million tonnes of coal over the next four years from the Nadvara mine in East Kalimantan.

Pan Asia release said “The Nadvara project is one of a number of projects that Pan Asia will be acquiring rights to under the acquisition of Innovation West. These projects will provide a mix of immediate cash-flow - from the provision of finance, a flagship project nearing development, advanced high potential exploration projects & a pipeline of additional project opportunities. The locking in of this financing is the last commercial item securing the rights to the package of thermal coal projects & the Company will now be moving forward expeditiously to complete the transaction.”

Mr Alan Hopkins CEO of Pan Asia believes the signing of this landmark agreement with Noble will prove to be a key milestone in the development of the Company's thrust to become a significant supplier to the Asian coal market. He said “Via the acquisition of Innovation West we will now not only have a significant portfolio of advanced coal projects, but with Noble as an international off take partner, we are well placed to achieve our ambitions of becoming a significant supplier of competitively priced energy into the emerging Asian markets.”

The completion of this arrangement with Noble now provides a very advanced & balanced package of assets being acquired as part of the Innovation West acquisition. In connection with the coal purchase agreement, Noble has provided prepayment finance of AUD 2 million.

The Company's rights to coal from the NDV mine form part of the IW acquisition and the preparation of notice of meeting to approve the acquisition is well advanced and an announcement on this will follow in the short term.
Source: SteelGuru



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