Polo Resources Limited, the mining and exploration investment company with interests in coal and iron ore, announced that it has signed a letter of intent with Earth Coal Resources Limited to procure coking coal projects in Indonesia.
Under the terms of the Letter of Intent, Polo will advance up to USD 3 million in the form of a convertible loan to a newly incorporated Indonesian company to fund due diligence and related project development costs in Indonesia, which is led by Polo’s partner in Indonesia, EarthCoal.
EarthCoal is a natural resource investment company focused on investing in coking coal assets and projects in Indonesia with outstanding fundamentals and growth prospects. EarthCoal’s leadership team is currently reviewing a number of potential coking coal investment opportunities in Indonesia, in respect of which the Letter of Intent has granted to Polo IndoCoal a right of first refusal should EarthCoal wish to pursue any such project further following completion of their due diligence.
At the date of the Letter of Intent, Polo IndoCoal’s shareholders comprise the geology, corporate finance and management team of Polo IndoCoal as agreed by the parties (who shall together in aggregate be interested in 50% of the issued share capital of Polo IndoCoal) and EarthCoal and its nominees who are also interested in, in aggregate, 50% of the issued share capital of Polo IndoCoal. At Polo’s election, the Convertible Loan can be converted into a 60% stake in Polo IndoCoal on a fully diluted basis.
Polo IndoCoal shall operate under a management services agreement between the Company and EarthCoal.
Mr John Benitz a director of EarthCoal has been appointed as Chairman of Polo IndoCoal. Mr.Peter Ong a director of EarthCoal, has been appointed as Deputy Chairman and President Director of Polo IndoCoal. Mr. Stephen Dattels and Mr. Neil Herbert shall join the board, as co chairman and executive vice president respectively.
Mr Neil Herbert executive co chairman and MD of Polo Resources said that “We are very pleased to have reached agreement with EarthCoal regarding the joint appraisal, acquisition and development of coking coal projects in Indonesia. We see EarthCoal as an important strategic partner for Poloand any investment in Indonesia positions the company well given the growing demand for energy in Asia. We look forward to working with EarthCoal.”
Mr Peter Ong deputy chairman president director of Polo IndoCoal stated that “Given Polo Resources and its leadership team’s experience we are very excited at having such an outstanding partner to work with us in Indonesia. Indonesia today represents, in our view, outstanding growth prospects and we very much look forward to working with Stephen Dattels, Neil Herbert and their team.
