Challenger Deep Resources Signs LOI to Sell Barito Coal Project

Challenger Deep Resources Corp. (TSXV:CDE) announced it has entered into a binding Letter of Intent for the sale of its Barito coal project in Central Kalimantan, Indonesia. According to the terms of the LOI, the private Australian company purchasing the Barito project will purchase all outstanding shares of PT Bestindo Energy, a wholly-owned subsidiary of Challenger Deep that currently holds all of its rights to the project.

As quoted in the press release:

The purchase price under the LOI is $2 million (USD) payable as to $50,000 on signing of the LOI, $100,000 on signing the formal Conditional Share Purchase and Sale Agreement (“CSP&SA”), $150,000 within 60 days of signing the CSP&SA, $500,000 on preliminary forestry permit approval for the project and $1,200,000 on final approval of the forestry permit and commencement of commercial production. Challenger will also be granted a royalty of $2 (USD) per ton on all coal produced from the project lands and from lands within a 2 km area of interest surrounding the project lands in which the purchaser may acquire further coal rights.

Click here to read the Challenger Deep Resources (TSXV:CVE) press release

See this press release on Marketwire
Click here to see the Challenger Deep Resources (TSXV:CVE) profile.