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Cokal gets $150m debt funding offer

Cokal gets $150m debt funding offer

Photo by Bloomberg

4th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Coal developer Cokal has received a proposed debt funding facility of about $150-million from an international consortium to fund its two-million-tonne-a-year Bumi Barito Mineral (BBM) project, in Indonesia.

The company told shareholders on Wednesday that it had entered into detailed negotiations with the consortium, in the form of a memorandum of understanding, which was subject to various terms and conditions, including due diligence and obtaining the necessary regulatory approvals to advance the project.

The ASX-listed company is also in continued discussions with other parties to finalise the necessary funding to start construction at BBM.

The project is estimated to have a resource of 264-million tonnes, of which 10.5-million tonnes has been classified as measured, 13.5-million tonnes as indicated, and the balance as inferred.

Cokal is undertaking a definitive feasibility study on the BBM project, with the company hoping to be in production by the first half of 2014.

Edited by Creamer Media Reporter

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