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Pan Asia Corporation gains key loan extension from Kopex

Last updated: 23:54 28 Oct 2013 EDT, First published: 00:54 29 Oct 2013 EDT

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Pan Asia Corporation (ASX: PZC) can now proceed with its financing arrangements after Kopex agreed to extend its US$2.53 million loan to 30 November 2014.

Now this re-financing is an important plank toward gaining development funding for the TCM coal project in Indonesia.

Recently, Pan Asia CEO Alan Hopkins brought on board Noble Resources Pte Ltd Singapore senior VP, Tim Gazzard as a director of the company.

This should assist Hopkins in furthering financing discussions for the high quality CV thermal coal project in South Kalimantan that the TCM asset looks likely to produce.

Hopkins is understood to be hopeful of completing one of the funding deals in the coming quarter.

Several groups have strong interest in securing the coal.

Under today's agreement, Pan Asia's subsidiary PT Transcoal Minergy (TCM) will pay Kopex US$181,000 and provide a security over a 10% interest in the TCM project to extend the loan.

TCM will also retain Marek Rosa for the term of the loan extension.

“This rescheduling was an important precursor to establishing the ongoing funding arrangements for the Company / TCM project. With this now in place, we have the foundation to complete all other arrangements,” chief executive officer Alan Hopkins said.

TCM

Pan Asia has a 75% interest in Transcoal Minergy, which owns the TCM coal project in the Tanah Bumbu Regency of South Kalimantan, Indonesia.

The project has a JORC Resource of 178 million tonnes of coal (6200 GAR kcal/kg) and is located east of Arutmin’s ATA open pit coal mine, giving it access to established infrastructure.

 

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