West-Australian based explorer Killara Resources has begun the acquisition of a 51% share in two coal concessions in West Papua province.
While the legal documentation of the agreement is being finalized, Killara is preparing to undertake legal and technical due diligence within the next few months. A final price for the sale will be decided once an initial JORC-compliant inferred resource is announced to form the basis for the project’s valuation.
The two concessions within the Bintuni Basin coal project take in 48,600 hectares in a large underexplored coal province. Killara is planning to commence field mapping once the binding documents have been signed.
Killara is also in negotiations regarding the acquisition of two large early stage projects in Kalimantan. Killara must fund all exploration and development activities to achieve various equity interests in the projects.
“Killara continues to be offered a range of resource projects for potential acquisition and/or joint venture throughout the Republic of Indonesia, with a focus on coal, precious metals and manganese projects. This process has been enhanced by the establishment of an additional Indonesian office in Jakarta,” says managing director Ian Prentice. He says evaluation of the opportunities is continuing.
Meantime, the company’s 80%-owned Belu manganese project in Indonesia’s West Timor, is undergoing testing at two broad target zones. The project covers three concessions over 5934 hectares in a region renowned for manganese mineralization. It is about 35km east of Atambua which is the capital of Belu regency in Nusa Tenggara Timur province.