Australian-listed Kangaroo Resources has received shareholder approval to complete the $277-million acquisition of the Pakar coal project, in Indonesia. Kangaroo has now issued more than 2.3-billion new shares to project owner PT Bayan Resources, as well as other parties, in order to acquire the Pakar project, giving Bayan a controlling 56% shareholding in Kangaroo.
Kangaroo hopes to have four production hubs in East Kalimantan: coking coal from Mamahak and Kubah Indah and thermal coal from Pakar and GPK. Pakar has an estimated resource of more than 3 Bt of thermal coal, with an average calorific value range of between 5 215 kcal/kg and 5 230 kcal/kg
“Bayan Resources is an experienced and capable partner with the expertise to assist Kangaroo deliver on all its objectives within the coal strategy it has developed,” said Kangaroo chairman Peter Richards.
Bayan has also suggested it could use the ASX-listed group as a vehicle to acquire other coal assets, likely in Australia.
Meanwhile, Kangaroo also appointed four executives nominated by Bayan, Darcy Wentworth, Alastair McLeod, Russell Neil and David Low Yi Ngo, to its board as nonexecutive directors.