Straits Asia Resources plans to acquire mining, exploration and offtake rights to two coal mining areas to the north of its existing operations on Sebuku Island.

The acquisition is subject to final due diligence and the consideration payable is $US25 million cash on completion.

An additional contingent payment of about $US114 million will be made upon satisfaction of additional conditions which include obtaining relevant Indonesian government approval to re-classify certain areas within the mining concession, and obtaining relevant approvals to start mining activities within the area.

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