Churchill buys Indonesian coal

LONDON-listed, Perth-based Churchill Mining has acquired an 80% stake in the Sendawar thermal coal exploration project in Kalimantan, Indonesia, in a mainly scrip deal valued at £2.75 million, with a £5.25 million placement also undertaken to support the acquisition and ensuing work programs.
Churchill buys Indonesian coal Churchill buys Indonesian coal Churchill buys Indonesian coal Churchill buys Indonesian coal Churchill buys Indonesian coal

 

Michael Quinn

Sendawar covers more than 1000 sq.km near Thai miner Banpu's newly-commissioned Trubaindo operation – currently producing at around 6 million tonnes per annum – and the privately-owned 3.4Mtpa Gunung Bayan mine.

It was acquired from PT Indonesia Coal Development for 100 million Churchill shares (priced at 2.5p per share) and £250,000 in cash.

The £5.25 million raising made to institutional and other investors comprised 210 million shares, also priced at 2.5p/share.

Churchill said the funds would be used to map and sample coal outcrops and begin drilling.

Churchill listed on London's AIM last April following a £1 million raising that issued shares at 2p.

The company is managed by former journalist James Hamilton – the founder of MiningNews.net – and Paul Mazak, formerly with Majestic Resources.

Churchill's only asset at the time was the South Woodie Woodie manganese project located near Consolidated Minerals' profitable Woodie Woodie operation.

The company's nominated adviser is Corporate Synergy, while Midas Investment Management is its broker.

MiningNews.net

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