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JATCORP LIMITED — Capital/Financing Update 2012
Oct 7, 2012
65154_rns_2012-10-07_c00caea9-7a55-47c4-98fa-7006ec6ef6d6.pdf
Capital/Financing Update
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JATENERGY LIMITED ABN 31 122 826 242
ASX CODE: JAT
AUSTRALIAN REGISTERED OFFICE
Floor 6, Suite 8 55 Miller Street PYRMONT NSW 2009 AUSTRALIA
CONTACT DETAILS
Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email [email protected] Web www.jatenergy.com
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ASX ANNOUNCEMENT
8 October 2012
JATENERGY SIGNS CONDITIONAL AGREEMENT FOR
SALE OF KATINGAN ASSET
Highlights
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Conditional Agreement signed for sale of Indonesian concession housing the Katingan Asset.
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Proposed sale in line with company’s strategy of divesting long‐term assets to focus on currently producing coal assets such as Jongkang.
The Board of energy company Jatenergy Limited (ASX code JAT) has received a Letter of Offer, and has accepted this non binding offer for the sale of its 80% ownership of Indonesian concession known as the Katingan asset in South Kalimantan, Indonesia. At this stage, the Company is awaiting formal Conditional Share Sale and Purchase Agreement to be signed. Final pricing is subject to further negotiation. The sale is conditional upon Jatenergy procuring the sale and purchase of the remaining 20% of the concession on behalf of the Purchaser.
Focus on coal assets already in production
As announced in the company’s Activities Report on 27 July, the board of Jatenergy has been looking to divest the company of certain unproductive long‐term assets, including its Katingan coal asset in Indonesia. This would allow the company to increase its cash reserves while focussing on the main assets it already has in production, such as the Jongkang I and Jongkang II coal mines.
Jatenergy has recently sold its stockpile of coal from its Jongkang mines. The company is also currently negotiating a long‐term off‐take agreement with a local buyer for the life of the mines. If finalised, this agreement will provide certainty for the future of these mines, allowing them to operate profitably for the foreseeable future.
Summary of Sale Offer and Acceptance
Following are the main terms of the letter of Offer and Acceptance:
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(a) Jatenergy and the Purchaser will negotiate and finalise a Conditional Share Sale and Purchase Agreement (CSPA) for its 100% owned Indonesian subsidiary Coal Soil Brik, in which Jatenergy holds its 80% ownership of the Katingan concession.
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(b) Jatenergy will assist in the procurement of the remaining 20% of the Katingan concession on behalf of the Purchaser, which is currently held by an Indonesian national.
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(c) Jatenergy will receive an initial payment of US$100,000 ( Initial Payment ) upon signing of the CSPA. Following the signing of the CSPA, the Purchaser will conduct due diligence.
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(d) Upon execution of the CSPA, Jatenergy will have a set time period to settle the conditions precedent ( CPs ). These CPs shall include items such as, the full acquisition of the Katingan concession on behalf of the Purchaser, warranty that there are no third party agreements been legally entered into (outstanding matter/requests) and provide information, documents and compliance required to complete Purchaser’s due diligence.
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(e) If the Purchaser is satisfied that the CPs have been fulfilled, the Purchaser will pay Jatenergy the final payment for the remaining Purchase Price by the DD Closing Date.
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(f) If Jatenergy fails to fulfil the CPs within the agreed period as mentioned above, the Purchaser before or on the DD Closing Date, at its discretion has the rights to terminate the agreement, or extend the period to allow for the fulfilment of the CPs, or negotiate new terms if not all CPs are complete.
Upon signing of the CSPA, Jatenergy will be able to provide to the market greater detail of the final binding terms. Until that time the terms agreed in the Sale Offer and Acceptance Letter are still subject to variation due to ongoing negotiations.
About Katingan
The Katingan asset comprises a single 5000 hectare tenement located 160 km northwest of the city of Palangkaraya on the south bank of the Katingan River in South Kalimantan. In early 2009 a scoping drilling program was completed, which included eight holes and two partially‐cored holes for 305 m of drilling.
Media and management contact
Tony Crimmins 02 95718300 [email protected]
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About Jatenergy
Jatenergy is a diversified energy company operating in Australia and Asia. It owns the rights to four coal projects in Indonesia’s Kalimantan coal region, as well as eight coal exploration permits and permit applications in Queensland’s Bowen and Galilee Basins. It also produces high quality crude jatropha oil from plantation operations in Central Java, Indonesia, for power production and the airline industry.
Directors
Tony Crimmins Executive Chairman
Richard Pritchard Non‐Executive Director
Mr Xipeng Li Non‐Executive Director Mr Wilton Yao Alternate Director
Jatenergy Limited ABN 31 122 826 242
ASX code
JAT Ordinary fully paid shares 83,615,568 Listed options 31,898,547