Canada's Challenger Deep Resources Has Entered Into an Exclusive Agreement

Canada's Challenger Deep Resources has entered into an exclusive agreement that allows it to conduct due diligence at Indonesian company HAAS' Alam Bahteria Barito Raya coal project in central Kalimantan, and if it is satisfied with the due diligence review it will be able to purchase all of HAAS' shares, the company said late Monday. 

Challenger, through its subsidiary Bestindo Energy, entered into an agreement with HAAS, which gives it the exclusive right for a period of 60 days to conduct due diligence on the HAAS assets, including a coal mining operation-production agreement for the ABBR project and its related mining infrastructure. 

The ABBR coal project is located in the Muara Teweh district of central Kalimantan and is 12 km east of the Barito river, the main river coal transportation route for the area. The project covers 1,787 hectares and has an operation-production license, Challenger said. It added that ABBR is a multi-seam high-quality thermal coal project that underwent successful trial production in 2009 and 2010. 

Challenger is an exploration company focused on the Asian coal industry.