An initial term sheet between Exalt and Odni was announced in April.

Completion of the sale is conditional on due diligence, shareholder approval, receipt of all relevant, including ASX approvals and a capital raising of at least $10 million.

Exalt aims to build a portfolio of Indonesian coal assets ranging from early exploration to producing operations, spread across Indonesia. The assets also have to be close to potential transport routes and existing or planned infrastructure.

Buying Ondi will give Exalt the opportunity to investigate and – if initial exploration results are satisfactory – acquire all of, or an equity interest in, a number of prospective coal projects in Kalimantan, Sumatra and West Papua.

The signing of the agreement follows the appointment of Barry Tudor as chief executive officer and managing director of Exalt.

Tudor, most recently managing director of Noble Resources Australia and a former CEO and MD of Gloucester Coal, concluded negotiations with Odni’s sellers.