Published: October 25, 2016 |

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Zamia Metals Ltd has entered into a binding agreement to acquire a company that owns a mining permit for a coal mine on the island of Central Kalimantan in Indonesia.

The purchase price of $24.3 million is to be affected by the allotment of 607.5 million ordinary shares in Zamia (post a 1 for 10 consolidation) at an issue price of $0.04 per share.

Zamia has also raised $250,000 in a debt facility which will be converted into ordinary shares that will provide working capital to be used primarily to meet costs related to the transaction.

The mining permit is located in the Barito Basin on the island of Borneo in the coking coal province of Central Kalimantan, which accounts for over half of the known coal reserves in Indonesia.

The geological sequence in the Barito Basin comprises mostly shallow shelf marine deposits, although terrestrial sequences containing coal occur at the base and top of the basin.

Currently, exploration activities have only focused on an area of 306 hectares located in the northwest corner of the total permit area of 4,798 hectares.

This explored area has substantial mapped coal outcrops and hence was the easiest target for exploration.

The remaining area of the project remains relatively unexplored and could provide a substantial upside.

Zamia is also undertaking a capital raising with priority to existing shareholders to raise at least $2.5 million.

Source: (October 11, 2016) Proactive Investors

About Zamia Metals
Zamia Metals Ltd is an Australian mineral exploration company, targeting the Clermont district of central Queensland.

To stop by Zamia’s website, CLICK HERE

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