Australian coal producing firm Kangaroo Resources (KRL) has signed an agreement to acquire nine coal concessions in the Pakar Thermal Coal Project in East Kalimantan from PT Bayan Resources for $277m, all payable in KRL shares.
This acquisition will see KRL establish a key strategic relationship with PT Bayan Resources, a coal mining company in Indonesia.
As per the transaction, Bayan will acquire an approximate 57% stake in KRL.
KRL has also signed a Memorandum of Understanding (MoU) with Bayan to immediately take operational control of KRL’s Indonesian projects prior to the completion of Pakar transaction.
Bayan is currently targeting coal sales for 2010 of approximately 12 million tonnes for nearly $1bn in revenues and approximately $150m in EBITDA.
KRL has been earning a 49% interest in the Tanur Jaya concession (one of the nine concessions within the Pakar Project) over the past 12 months and this position will now be incorporated into the overall 99% interest that KRL is acquiring in the Pakar Project.