, under 60 per cent-owned subsidiary PT Bumi Barito Mineral (BBM), has executed binding agreements to fund the development of the BBM Project in Central Kalimantan, Indonesia.
The agreements are with International Commodity Trade (ICT), a Singaporean-based company that invests and trades in coal.
Cokal has interests in four projects in Central Kalimantan for metallurgical coal. The BBM project is Cokal's most advanced project.
Under the Capital Participant Agreement, debt financing of US$20m will be injected into BBM. Under the Coal Marketing Agreement, ICT will be the exclusive marketing and selling agent of coal for the international market outside of Indonesia, with a miniumum of 8 million metric tonnes of coal to be marketed over 8 years. First delivery is expected in early 2022.
Upon entering into the agreements with ICT, BBM gave notice of termination in respect of previous funding agreements with China Railway 21st Bureau Group International Engineering and Beijing Fidick International Trade.
Shares in Cokal (ASX:CKA)
are trading 22.95 per cent higher at $0.08.