Paser has entered into a binding MoU with Indonesian company Gunung Mentari Mining to acquire a joint venture interest in the Paser coal project located in the coal mining region of East Kalimantan.
The Paser project, situated within the Tanjung formation, covers 43 hectares and is surrounded by advanced haul roads.
Padang is confident that the Paser project has the potential to resume production subject to a positive mining study.
The company is in the process of mobilising a drilling team to confirm the economic viability of recommencing mining.
The team will undertake work to prove up the project’s resource to a JORC code-compliant standard.
Completion of the acquisition is subject to a number of conditions, including finalisation of legal and financial due diligence and each party obtaining shareholder and regulatory approvals for the deal.
The proposed acquisition is part of Padang’s goal to transform into a producer of high quality metallurgical coal.
The company is also aiming to become a producer of copper, gold and iron ore for niche export and commercial markets.
Padang, formally Palace Resources, listed on the Australian Securities Exchange in December 2006.