The proposed acquisition, which is part of the company’s efforts to strengthen its coal production levels, will provide it with access to the coal deposits.

The deal was signed with Optimum Source, which is an investment holding company incorporated in the British Virgin Islands.

Ultimate Holding has signed an agreement for new shares in Era Tiga Putra at IDR1m ($83.7) per share.

A subsidiary of Era Tiga Putra, Karunia Mitra Berkat entered into a conditional subscription agreement for shares in Sungai Danau Jaya.

Sungai Danau Jaya holds production operations mining business licences for 194.9 hectare and 41.2 hectare in the Regency of Tanah Bumbu, South Kalimantan province, Indonesia.

Geo Energy Resources said that an independent technical report will be prepared by an expert appointed by Optimum Source, to identify the amount of proved and probable reserves in the concessions.