PHI Energy has entered into an agreement to acquire additional coal mine assets from PT Dian Anugrah Pratama in Indonesia.
The company will buy a total estimated mineable coal reserves of 33 million metric tons located in West Sumatra, Kampar and South Kalimantan for $3m in cash and 47 million shares of its common stock.
The new purchase agreement includes the previously announced 10 million metric tons of coal reserves located at Kecamatan Kapur IX in Propinsi Sumatera Barat, Indonesia.
PHI Energy chairman Allen Wu said that the acquisition of the coal assets is part of PHI Energy’s plan to secure sizable sources of coal supply to meet the demand of potential long-term off-take contracts.
The acquisition of the coal mine assets is expected to be closed on 31 May 2011.