Pan Asia Corporation Ltd.
Pan Asia Corporation Ltd.: MOU WITH CHINESE MINING COMPANY REGARDING THE TCM COAL PROJECT
Pan Asia Corporation Ltd. / Contract 14.05.2010 17:55 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- MOU WITH CHINESE MINING COMPANY REGARDING THE TCM COAL PROJECT HIGHLIGHTS: - MOU signed with the Chinese company Zhongding International Engineering Co Ltd ('ZIEC'), who have considerable underground mining experience in Indonesia and internationally - The MOU covers involvement in pre mine planning including the planning of additional drilling, a feasibility review, the possible acquisition by ZIEC of a significant interest in TCM post feasibility at market value, assistance with project development funding and the undertaking of underground mining operations. - The MOU at this stage is non binding as commercial terms will not be set until after feasibility. TCM / Pan Asia can deal with additional parties in relation to this emerging project, for which we recently announced a maiden JORC resource. The Directors of Pan Asia Corporation Ltd (the 'Company'; ASX: PZC) are very pleased to announce the signing of a Memorandum of Understanding ('MOU') between PT TransCoal Minergy ('PT TCM') and Zhongding International Engineering Co Ltd ('ZIEC') covering the TCM coal project in South Kalimantan, Indonesia. Headquartered in Nanchang, China, ZIEC has been recognised as one of the world's top 225 international contractors and has considerable mining experience in Indonesia and Asia more broadly. ZIEC's experience in the field of underground coal mining in Indonesia is of particular relevance to the TCM coal project, for which the Company has previously stated its ambition to establish an underground mine, targeting production of at least 1.5 Mtpa in 2012. Under the MOU, the parties have agreed that ZIEC will provide advice on drilling and project development matters with an emphasis on underground mining at the TCM tenement. Subject to the completion of additional drilling to define the ultimate resource tonnages and the undertaking of a feasibility study, the MOU provides that ZIEC may, subject to establishing a fair commercial market price and contingent on assisting with project development finance, undertake the underground mining operations and become the majority owner of the project. Upon completion of the Company's acquisition of Innovation West and the execution of final transaction documents between Innovation West and PT TCM, in relation to which a memorandum of agreement has already been executed, the Company would acquire ultimate ownership of a minimum of 75% of the TCM project. CEO Alan Hopkins commented 'This early strong expression of commercial interest in the TCM underground project by a group with long experience in underground coal mining is another terrific step forward after the recent announcement of a maiden JORC resource. We do however anticipate additional strong interest as it is still early days for this high value coal project'. ALAN G. HOPKINS Chief Executive Officer About Pan Asia Corporation Limited Pan Asia Corporation Limited is a rapidly growing diversified resources company primary listed on the Australian Securities Exchange and secondary listed on the Frankfurt Stock Exchange and with offices in Perth and Sydney, Australia and Jakarta, Indonesia. The Company aims to be a major supplier of key resources into the expanding Asian markets and is well advanced in its due diligence and requirements for regulatory and shareholder approval for the acquisition of a number of significant coal and manganese assets in Indonesia. This diversified portfolio of assets includes projects in both production and exploration stages as well as a significant opportunity to participate in commodity trading which will complement these projects. The evaluation and development of the current suite of assets in addition to new opportunities that arise from a strong local partner network will be the foundation for the Company's aim to become a top tier coal and manganese company in Indonesia over the next three years. An extensive international financial network provides support for the Company's rapid growth plans. 14.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------
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