(EnergyAsia, January 11 2012, Wednesday) — Australian thermal coal company Pan Asia Corp said it has secured US$1 million in funding from Kopex to cover expenses for drilling and work on the final feasibility study at its flagship TCM coal development project in Indonesia’s South Kalimantan province.
The funding is repayable at Pan Asia’s election in cash or convertible into ordinary fully paid shares at A$0.15 per share within 60 days following completion of the study. (US$1=A$0.97).
Kopex, a large international coal group, had recommended the TCM project be advanced to final feasibility stage following a positive independent study, which signals its view of the project’s viability.
Pan Asia said TCM has a confirmed resource base of 115 million tonnes, with an exploration target of 200 million tonnes over the next 24 months.
Last April, Kopex agreed with Pan Asia to co-fund the accelerated infill drilling programme and the final feasibility study due to be completed this quarter.
Kopex’s total commitment to date towards the drilling programme now stands at US$1.6 million. It has recommended the option of access from an open cut high wall be pursued as part of future studies, which is positive for TCM given Kopex’s experience in underground mining space, and the likelihood that it will become the project’s mining contractor.
Kopex has also recommended the option of access from an open cut high wall be pursued as part of future studies.
Through this project, Pan Asia said it has exposure to high quality export thermal coal with an average calorific value of 6,566kcal/kg, 6.41% total moisture, 13.52% ash and 1.52% sulphur.