Jatenergy said it would invest up to $650,000 to develop the Geronggang coal project in South Kalimantan, which it began investigating in December.

The company said in a statement Monday that it was seeking a partner to fund a further $650,000 to bring the project into production.

This is the same staged and profit-sharing investment model that the company used for its Jongkang I and II coal mines. If successful, Geronggang would be its third producing Indonesian coal mine.

Under this model, Jatenergy and its investment partner would make an initial 50% investment upon signing of a binding agreement with PT Saijaan Prima Coal.

Four to six weeks later and after final presentation of a mine plan for production, a final payment would be made.

After royalties are paid to the project owner, any profits from the venture would be shared 50:50 between Jatenergy and its investment partner.

Jatenergy also announced that it had signed two additional exclusive memoranda of understanding with PT Saijaan Prima and PT Platinum Prima Iron.

The MoU with PT Saijaan Prima covers the Sebuku Project just south of the Geronggang Coal Project area. The project on the island of Sebuki, off the southeast tip of Borneo, is prospective for coal and iron ore.

The second MoU covers a large laterite iron ore deposit.

The MoUs are effective for three months, during which time Jatenergy will conduct economic, geological and legal due diligence on the project.