Diversified energy company Pan Asia Corporation announced today that it has entered in to a heads of agreement with Glory Merry for the sale of its Innovation West Mantewe subsidiary, which has a 75 per cent interest in Indonesian mining operation Transcoal Minergy.
Glory Merry is a private business group with operations primarily in investment, property, construction, and mining across various sectors in Asia.
If successful, the purchase agreement with Pan Asia will represent a continuation of its recent expansion into the coal mining sector more specifically.
Under the terms of the heads of agreement, $US500,000 will be paid directly to Pan Asia with a further $US500,000 paid to an independent consultant to carry out an updated feasibility study on the TCM project.
The potential sale is also subject to both shareholder and regulatory approval, as well as a full due diligence process of up to six months.
If the transaction is to proceed, Pan Asia will receive $US9.25 million less any project costs or debts that remain to be cleared.
Pan Asia Corporation’s share price rose 33 per cent today.
