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Challenger signs coal mining and marketing agreement in Indonesia

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Challenger Deep Resources entered into a coal mining and marketing agreement with CV Kara Elmas Madenleri in Indonesia.

The agreement pertains to the KEM coal project in Central Kalimantan and was executed by the company's subsidiary Bestindo Energy.

Subject to due diligence, the agreement will Challenger to gain complete control of all the coal production and its marketing from the KEM project area.

Located in the Murah Teweh district of Central Kalimantan, the KEM coal project is a multi-seam high-quality thermal coal operation with existing infrastructure.

Challenger president and CEO Ranjeet Sunder remarked that the agreement was a significant one for the company.

"The KEM Project gives us the potential to generate near-term cash flow which will provide funding for our Tabang Project development and will enable us to capitalize on other high-quality opportunities, while minimizing dilution to our shareholders during these difficult capital markets," Sunder said.

"We view this project as having very low risk and relatively low capital requirements which are both key elements in our Indonesian coal strategy."

Challenger Deep Resources entered into a coal mining and marketing agreement with CV Kara Elmas Madenleri in Indonesia.

The agreement pertains to the KEM coal project in Central Kalimantan and was executed by the company's subsidiary Bestindo Energy.

Subject to due diligence, the agreement will Challenger to gain complete control of all the coal production and its marketing from the KEM project area.

Located in the Murah Teweh district of Central Kalimantan, the KEM coal project is a multi-seam high-quality thermal coal operation with existing infrastructure.

Challenger president and CEO Ranjeet Sunder remarked that the agreement was a significant one for the company.

"The KEM Project gives us the potential to generate near-term cash flow which will provide funding for our Tabang Project development and will enable us to capitalize on other high-quality opportunities, while minimizing dilution to our shareholders during these difficult capital markets," Sunder said.

"We view this project as having very low risk and relatively low capital requirements which are both key elements in our Indonesian coal strategy."