The conditional share sale and purchase agreement for 100% of the project to Indonesian PT Prakarsa Corporindo was signed on July 17 for a total of $US2 million.
Under the terms of the agreement, Prakarsa paid an intial downpayment of $US200,000 and has six months to complete the transaction and pay the remaining $1.8 million subject to a number of conditions.
The principal conditions precedent for the sale include details on CSB, provision of CSB financial statements, evidence of a shareholders meeting, internal consents and third party consents as required from the Indonesian government.
Once these conditions have been met, the remaining purchase price will be paid and Jatenergy will earn 80% minus costs, in line with its current interest in the project.
The agreement replaced an expired conditional agreement with another Indonesian company, Jatenergy said in the announcement.
The Australian Securities Exchange-listed company acquired an 80% interest in the project after completing its acquisition of Blackrock.
The exploration target estimate for the project is from 36.5 million tons to 43.1Mt for the tenement from a total of 58 coal outcrops studied and a 2009 scoping drilling program.