Announcement
Arakan Resources Limited Acquisition
Arakan Resources Limited (Arakan) is pleased to announce the completion of the
acquisition of Posit Coal Pty (Posit) through the issuance of 40,000,000 shares
issued at $0.20 cents per share for a total consideration of $8,000,000 usd.
Posit Coal has entered into a Joint venture with state enterprise Kyrgyz Kumor
for the management and increase in production of the Kara-Keche thermal coal
project in the Kyrgyz Republic. It is estimated that the Kara-Keche mine which
is currently in small scale production of approximately 100,000 mtpa contains
upto 100mt of coal. Posit has entered into the agreement to increase production
to 1.5 mtpa over a 3 year period which will result in significant cash flows
for the 50-50 joint venture between the company and State enterprise Kyrgyz
Kumor.
As part of this transaction Posit will appoint 2 new members to the board.
Christian West, director of Arakan Resources Limited states "this is an
important acquisition for Arakan and provides diversification both
geographically and minerally. In addition it will provide exposure to cash
flows which we believe will increase significantly over the coming years"
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