Cokal gains ground

INDONESIAN explorer Cokal has entered an agreement to acquire a 75% interest in tenements adjoining its Bumi Barito Mineral coal project.
Cokal gains ground Cokal gains ground Cokal gains ground Cokal gains ground Cokal gains ground

Peter Lynch, image courtesy of Cokal.

Staff Reporter

The BBM mine is in Central Kalimantan, covering roughly 19,400 hectares, and is immediately adjacent to BHP Billiton's Juloi tenement.

Cokal executive chairman Peter Lynch said: “The acquisition of PT Tambung Benua Alam Raya was another major step forward for the company, which is on track to commence construction of its propsed BBM coal mine later this year.”

The coal explorer has executed a binding share sale and purchase agreement with the owners of TBAR, which adjoins the southern boundary of BBM.

Under the $5 million acquisition, Cokal will acquire 75% of the equity of TBAR and local Indonesian partners will hold the remaining 25%.

The TBAR exploration licence is on the clean and clear list and includes an exploration area of 18,850 hectares. More than 80% of the lease is available for exploration subject to the issuance of an exploration forestry permit.

“The TBAR acquisition represents a significant opportunity for Cokal to achieve further exploration success, which would provide the company with the ability to leverage off the infrastructure planned for the development of the adjoining BBM project,” Lynch said.

“Since the start of the new year, Cokal has achieved three important milestones towards obtaining the necessary approvals for the BBM project, having completed and submitted our EIS [Environmental Impact Statement], together with the applications to upgrade the mining licence and the forestry permit.”

Cokal executive director Pat Hanna said exploration at BBM pointed to explored seams trending down into the adjoining TBAR tenement.

The company has interests in four projects in Central Kalimantan and one project in West Kalimantan, Indonesia.

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