Noble, Asia's largest diversified commodities trading company, had acquired 7 million shares at $0.07 each to deepen ties between the two companies.
Pan Asia and Noble had developed a commercial relationship through previous arrangements in East Kalimantan.
Noble has also been appointed a strategic advisor to PT Transcoal Minergy (PT TCM), a 75% owned subsidiary of Pan Asia that is developing a High CV Thermal coal project in South Kalimantan, Indonesia.
Under the Strategic Advisory Agreement, the trading house will:
- Provide strategic marketing advice to PT TCM in respect of coal produced from the concession in South Kalimantan;
- Assist with TCM Coal sales agreements direct to end customers; and
- Assist raising capital to finance the development of the high CV thermal coal project (without being under an obligation to provide funding).
- Be appointed strategic advisor for sales of TCM Coal on a worldwide basis; and
- Be paid a strategic advisory fee, which will commence on coal production and will be calculated by reference to the revenue received by PT TCM on the sale of coal.
TCM has a JORC Resource of 177 million tonnes of coal.
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