Cokal receives takeover proposal from Indonesia-listed company

Cokal said it has received an unsolicited non-binding proposal from Indonesia-listed Cakra Mineral Tbk to acquire all of its ordinary shares.

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The Australia-listed metallurgical coal explorer said it has not formed any opinion on the proposal and that it would engage Cakra Mineral to evaluate the offer, it said on Tuesday March 3.

Cakra Mineral is a holding company conducting mining operations of iron ore and zircon sand, according to Cokal’s statement. It performs marketing services for the business group and also has several subsidiaries engaging in iron ore mining and mineral commodities trading.

The company is looking to expand its mining operations to include coal and has been actively acquiring a number of coal tenements recently, according to the statement.

Earlier last month, Cokal secured a $110-million project finance facility for its Bumi Barito Mineral (BBM) project from Cedrus International Limited and Platinum Partners.

The 2-million-tpy project comprises of 19.5 million tonnes of measured, 23.1 million tonnes of indicated and 224 million tonnes of inferred coal resources according to the JORC code.

The product split for the BBM resource is estimated as 90% coking coal and 10% pulverised coal injection (PCI) materials.