Epic eyes Indonesian coal

INDONESIAN coal is continuing to attract the interest of Australian exploration companies, with Epic Resources agreeing to acquire two coal licences in the country’s East Kalimantan province.
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Courtesy of Epic Resources.

Lauren Barrett

Under the conditional agreement, which is subject to shareholder approval and due diligence, Epic will acquire up to 100% of the issued shares in the Subi Cove development, giving the company access to two coal exploration licences in the Long Bagun district.

Epic will initially pay the vendors $US861,000 via the issue of 4 million fully paid ordinary shares at 20c, which is a 90% premium to the last traded price of A$0.105.

The TBK and TBW coal licences are located to the south of the Mahakam River, and are in close proximity to Kangaroo Resources Mahakam semi-soft coking coal mine.

The licences cover approximately 15,000ha.

Epic Resources executive chairman Faldi Ismail said the agreement signified a turning point for the company.

“This is an exceptionally exciting transaction for Epic,” he said.

“Not only does it provide an attractive entry into one of the most exciting mineral-rich countries in the world, but also provides potential access to a commodity that has experienced strong demand growth as a direct result of the industrialisation of China and India.”

East Kalimantan is the most established mining area in Indonesia, accounting for 65% of the country’s coal production in 2010.