Challenger Deep Resources Corp. (TSX-V:CDE) is pleased to announce that it has entered into a binding Letter of Intent for the sale of its Barito coal project in Central Kalimantan, Indonesia. Under the terms of the LOI the purchaser, a private Australian company, will purchase all of the outstanding shares of PT Bestindo Energy, a wholly-owned subsidiary of Challenger which holds all of the Corporations rights to the Barito project.
The purchase price under the LOI is $2 million (USD) payable as to $50,000 on signing of the LOI, $100,000 on signing the formal Conditional Share Purchase and Sale Agreement $150,000 within 60 days of signing the CSP&SA, $500,000 on preliminary forestry permit approval for the project and $1,200,000 on final approval of the forestry permit and commencement of commercial production. Challenger will also be granted a royalty of $2 (USD) per ton on all coal produced from the project lands and from lands within a 2 km area of interest surrounding the project lands in which the purchaser may acquire further coal rights.
Effective immediately, the purchaser has assumed responsibility for all ongoing expenses of PT Bestindo Energy and the Barito project.
As a consequence of its significant financial interest in the project going forward, Challenger will provide such advice to the purchaser in its development efforts as may be appropriate. Challenger will continue its efforts to finance or to find a joint venture partner for its Tabang coal project located in East Kalimantan, Indonesia and will continue to review business opportunities in both the resource and non-resource sectors.
Challenger Deep Resources Corp. is an exploration company focused on the Asian coal industry. Challenger’s business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.
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