SYDNEY (Yosefardi) – Indus Coal Limited had on March 2014 entered into an agreement with Gleneagle Nominees and others to establish a short term funding facility (bridge funding facility).
As amount of A$3,670,000 is to be provided to the company under the bridge funding facility, used to upgrade the forestry license for the company’s Jambi block 9 project, continue land clearance, and complete the resources definition on Jambi block 9.
This work will facilitate the monetisation of Jambi block 9 with groups interested in acquiring all or part of Jambi block 9 or to become a funding partner for Jambi block 9.
The bridge funding facility has a fixed interest rate of 50% of the principal funding provided for Jambi block 9.
Under the terms of bridge funding facility, the company agreed to allot and issue 7,820,163 bridge funding options to unrelated third party funding providers once it has obtained shareholder approval to do so.
The company also agreed to allot and issue 2,179,837 bridge funding options to two related parties (Scott Douglas and John Kenny).
The Muara Tebo Regency Department of Mines and Energy, Sumatra, has granted the production mining lease on Jambi block 9.