Cokal fields $US150 million funding offer for coal project

Brisbane-based coal company Cokal has received a conditional proposal for a $US150 million debt finance facility to fund an Indonesian coal project.

Negotiations around the facility from Platinum Partners are still ongoing but if finalised would be used to develop Cokal’s two million tonne per annum Bumi Barito Mineral coal mine.

Cokal Chairman and Chief Executive Officer Peter Lynch said Cokal is still in discussions with a number of parties including Platinum and is focussed on finalising the necessary funding to start construction on the BBM project.

“The outcome of all financing discussions, whether with the Platinum Partners consortium or others, is speculative,” he said.

“Shareholders should note that there is no certainty that any agreement will be reached or that any transaction will eventuate from any current or future discussions or diligence enquiries.”

Cokal recently announced an upgraded JORC resource for the BBM project and is in the final stages to the completion of a Definitive Feasibility Study (DFS).

The project still hinges on the approval of a Production Forestry Permit from the Indonesian Forestry Ministry.

An application was lodged in January 2013 and the company said it believes it is close to obtaining the permit.

Cokal said it is aiming to launch construction in coming months, with first coal expected to be achieved in 2014.

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