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Cokal considered AMM a non-core tenement located a considerable distance west, in another geological formation, from Cokal’s main tenements located in Central Kalimantan, executive chairman Peter Lynch said.
“While PT AAM contains high Calorific Value (CV) thermal coal, is contains little possibility of any discovery of metallurgical coal, the core focus for Cokal,” he said.
“It was therefore considered appropriate in the current climate to realize the value of AAM, reduce ongoing liabilities and to use the funds for working capital while the board purse the funding options previously announced.”
As a result of the experience built up over past five years by Cokal in the Indonesian mining regulatory process, Cokal will provide PT Jinantra Karya Raya non-exclusive consulting services on a retainer basis.
The retainer is for $US400,000 and expires on 12 June 2016.
“Cokal is glad to be working with PT Jinantra Karya Raya and its principals to achieve their goals in receiving the necessary regulatory approvals and the most efficient route to production for the growing interests in Indonesia,” Lynch said.
