Challenger Deep Resources Corp. (“Challenger” or the “Company”) CA:CDE +4.62 percent is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with the Indonesian coal marketing firm, PT. Surya Dinamika Lestari (“SDL”) to market domestic thermal coal from Challenger’s Tabang coal Project in East Kalimantan. Under the terms of the MOU the parties will work together to develop a marketing plan and negotiate a formal coal sales agreement for the Tabang coal production which is targeted for 2013. SDL will seek to secure domestic buyers for the coal and will advise Challenger on the best pricing parameters for different production scenarios associated with Tabang.
Challenger is developing the Tabang Project using a three-step approach. Step one involves the construction of a short-haul road and jetty facility on the Belayan River for production from the ATRP property. Steps two and three add infrastructure and development of the Pelangi, CBM and IP properties. After review, Challenger has determined that the Tabang project has favourable coal economics for export to India and China, while also supplying a burgeoning Indonesian domestic power market as its economy grows.
SDL is a Indonesian coal trading company that sources coal for domestic Indonesian coal buyers. SDL’s domestic clients include PT. Perusahaan Listik Negara (“PLN”). SDL is also part of a consortium that has won tenders to supply coal to the PLN for upwards of 35 coal fired power stations currently operating, in construction and planned.
“This MOU is an important first step in the sales planning component of the overall Tabang Project development plan,” stated Ranjeet Sundher, the President and CEO of Challenger. “This relationship is focused primarily on the lower heating value coal component of our project and on domestic consumption, which provides the cornerstone of our initial development plan. Moving to this stage in the process also demonstrates our confidence in this project and in our marketing partner, SDL.”
Challenger’s Tabang coal Project comprises four properties in close proximity. Two properties, a ATRP and Pelangi, are under formal purchase contracts and two, CBM and Inhuwa Purba (“IP”) are under exclusive MOUs.
ATRP, the most advanced of the Tabang Project properties, is in the mining permit application process. A feasibility study has been completed submitted to the regulatory authorities and and the Environmental Study is near completion, pending approval of the Feasibility Study. If the Feasibility Study is approved and the Environmental Study is subsequently approved, a mining permit may be issued as early as the end of Q2, 2012.
The Qualified Person (as defined by NI 43-101) responsible for the review, verification and approval of the technical material presented in this news release is Andre Talaska, a director of PT Bestindo Energy, a wholly owned subsidiary of Challenger.
Challenger Deep Resources Corp. is an exploration company focused on the Asian coal industry. Challenger’s business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Statements in this press release may contain forward-looking information including, statements regarding exploration and production and marketing activities. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration and mining permits, surface access and other licenses from Indonesian regulatory authorities, exploration results, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed exploration and development programmes in Indonesia or other project acquisitions will be completed or, if completed, will be successful or that coal production and sale will be achieved. Readers are cautioned that there has been insufficient exploration to define a mineral resource and that it is uncertain when or if the Tabang Project will be put into production.
The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Challenger Deep Resources Corp.
Challenger Deep Resources Corp.
Kirk Gamley or Mas Kobuchi