Cokal obtains financing

COKAL has won a new investor and an initial $US8.7 million in funding for the development of its BBM project in Indonesia this year.
Cokal obtains financing Cokal obtains financing Cokal obtains financing Cokal obtains financing Cokal obtains financing

Cokal's four Indonesian projects are in Central Kalimantan.

Staff Reporter

The company’s 15,000 hectare Bumi Barito Mineral project in Central Kalimantan has a JORC resource of 77 million tons comprising 70Mt inferred and 7Mt indicated.

Cokal is completing definitive studies and obtaining the necessary approvals for BBM, with the aim of starting construction in October and first production in the first half of 2014.

As part of the financing arrangement, Singapore-based Blumont Group will be issued just over 60 million fully paid shares at 16c each to raise $A9.6 million ($US8.7 million).

The private placement will be issued in five tranches in line with Cokal’s planned drilling and engineering plans at BBM between July and November.

The money raised would be used to fund the work and for general corporate pruposes, Cokal said.

Blumont has recently been expanding its interests in mining, supporting fellow Australia-listed Celsius Coal in February with a $US5.2 million financing agreement.

Cokal executive chairman Peter Lynch said the company was very pleased to have the support of the major investment company, which has a mining focus as part of its longer term investment strategy and is looking to develop mining opportunities in the Asian region.

“This is an ideal opportunity for Cokal to expand its shareholder base into Asia with a mining focused strategic investor,” Lynch said.

“The placement to Blumont will provide sufficient funds to complete the drilling program and the definitive feasibility study for BBM project.“

Cokal has interests in five projects in Central Kalimantan and one project in West Kalimantan, all prospective for metallurgical coal.