View Resources plans acquisition in coal sector in Kyrgyzstan

Sunday, 20 Nov 2011

View Resources is set to move into the coal space, with the acquisition of a 90% interest in two prospective coal assets in southern Kyrgyzstan.

The company has entered a binding Heads of Agreement to acquire 100% of the shares in Hong Kong based Oshpur, which holds 90% interests in the Sary-Mogol and Bel-Alma projects.

Subject to shareholder approval, the deal will be funded through staged payments of USD 2.6 million cash and the issue of 100 million shares and 500,000 performance shares in View.

Both projects are located close to the border of China, which is a likely end user of any coal produced, providing good access to a potential market.

In addition to the two projects included in the acquisition, the vendors of the projects will assist View in securing additional coal projects in Kyrgyzstan.

The Bel-Alma project is a potentially large tonnage, high quality thermal coal project, covering an area of 278 hectares with historical samples returning calorific values between 6500 kilocalories and 7150 kilocalories.

(sourced proactiveinvestors)