The $5 million acquisition would expand Killara’s total project area in the region to more than 15,000 hectares.
The deal, still subject to a six-month due diligence program, will transfer to Killara an 85% interest in the Prima Bahagia Permi Sejati concession, an asset suggested by previous drilling to contain low ash, high sulphur and high energy coal.
Field evaluation work is already underway at the expansion site where a community liaison and mapping program will lead to the mobilization of general reconnaissance mapping and coal sampling.
Killara executive director Darren Misquitta said the acquisition would help position the company as a new leader in Indonesia’s competitive coal scene.
“We are very happy to be expanding this project and this acquisition represents a significant step in becoming the dominant player in the immediate region,” he said.