Pan Asia Corporation has entered into an exclusive Heads of Agreement with Universal Coal Resources of Singapore for the commercial sale of its 75% interest in the PT Transcoal Minergy (TCM) high CV thermal coal project in South Kalimantan. Universal has agreed to purchase Pan Asia’s 100%-owned Singapore subsidiary, Innovation West Mantewe (IWMPL), owner of the 75% interest, for Sin$30 million.

Universal will undertake a SGX Catalist listing and Pan Asia, upon completion of the successful listing, will receive shares in Universal to the value of Sin$30 million at the IPO issue price.

Universal is a special purpose vehicle substantially owned by Boelio Muliardi, a resident of Indonesia. Mr Muliardi has a degree in Business Administration and Finance from the University of Washington, Seattle, USA. He has had a diverse career, which has included businesses in the property development, retail chain, manufacturing, food and beverage, aircraft leasing, agricultural and healthcare industries.

Mr Muliardi is a director of Indonesia Stock Exchange listed company PT Cakra Mineral Tbk, a manufacturer and exporter of iron ore and zircon sand. The company has integrated mining business segments ranging from exploration mining and process marketing.

Universal has assumed, prior to completion of the transaction, the responsibilities including expenses, of obtaining all statutory approvals, including but not limited to the forestry permit, obtaining all relevant contracts, obtaining any high-wall access and undertaking all value-added works, in connection with IWMPL or TCM or as required by SGX (Catalist).

Universal will assume the liabilities of Pan Asia and IWPL as guarantor under the guarantee and indemnity made between Pan Asia, IWPL and PT Kopex Mining Contractors Kopex as financier, and Pan Asia and IWPL are to be released from the guarantee and indemnity.

Pan Asia’s CEO Alan Hopkins said: “This provides a substantial value add to the current assets of the company as well as an avenue for the raising of the $20 million equity component required for the development of the TCM project without significantly diluting Pan Asia shareholders. We will assist Universal in its endeavours to put together the full package.”