The company issued promissory notes for $3m and 47 million shares of its common stock, valued at $1 per share, in exchange for total estimated mineable coal reserves of 33 million metric tons located in West Sumatra, Kampar and South Kalimantan.

According to the company, the pre-production estimated value of the coal reserves is about $85m.

PHI Energy chairman Allen Wu said this acquisition marks a milestone in implementing the company’s vision to own and operate a global basket of coal mines strategically located in Indonesia, Colombia, Canada, South Africa, Philippines and Mongolia.