The Australian company Cokal announced that it has signed a term sheet for a financing package of no less than A$67 million with Asian minerals development company, Domain International Holdings, to develop its Bumi Barito Mineral (BBM) Coking Coal Project.
Domain has been in discussions with Cokal for 12 months and has conducted due diligence on the Indonesian project, reporting to be more than satisfied with it findings and involvement in the BBM project.
Under the agreement, Domain is to provide Cokal with a debt and equity financing package sufficient to fully fund the development of the BBM project to a capacity of 2Mtpa production of coking coal. The agreement is not binding unless an initial payment of A$1 million is received by 25 May 2018, after which Domain will be granted a three-month exclusivity period for the projects financing.
Cokal has developed a much sought after coking coal project in BBM to production-ready stage, and is highly motivated to commence production in order to realise the inherent strategic and financial value of the asset, said Cokal Chairman Mr Domenic Martino.