Singapore SGX Mainboard-listed coal mining group Geo Energy Resources Ltd has entered into an agreement to acquire the remaining 34 per cent shareholding interest in Borneo International Resources from British Virgin Island’s holding company Optimum Source Ltd for $25 million.
Borneo International Resources holds an equity interest of 98.96 per cent in PT Sungai Danau Jaya, which is the holder of coal mining concession in South Kalimantan, Indonesia.
As a result of this acquisition, Geo Energy will also own the entirety of this interest, which gives it greater effective control over the business operations and increased coal production levels.
The source of funds for this deal will come from internal resources including cash, cash equivalents and shares, according to Geo Energy’s statement to Singapore Exchange.
It will pay $3.5 million by its ordinary shares at the price of S$0.18 each, and the majority $21.5 million by cash and cash equivalent within the end of next year.