Under the agreement, COPA will pay in advance the coal sale deposit of $500,000 which is payable within 18 days of signing the agreement to Killara and is subject COPA’s due diligence in respect of mining reserves and coal delivery.

In addition to providing ongoing revenue from coal sales for Killara, the agreement will allow Killara to become cash flow positive in future.

The BEH project is divided in three blocks, which include the Eastern block, the Central block and the Western block.

Exploration program on the Eastern Block has been completed by contractor PT Reka Indo Internusa and 48 coal samples which were collected have been for independent lab testing.