Universal has inked a conditional agreement to acquire a 75% interest in PT Transcoal Minergy Coal Project (TCM), which owns a business licence for a mining concession in Mantewe District, Tanah Bumbu Regency, South Kalimantan Province.
Universal wants to list in Singapore and the loan note entitles Polo to convert the principal outstanding plus any accrued interest into not less than 20% of Universal up to 18 months from draw-down, or earlier upon the receipt of approval in principle to list.
The TCM project, which has a production permit to April 2028, is focused on developing a two million tonnes (Mt) a year underground operation delivering high quality bituminous coal.
The current JORC Resource of 129 Mt has been derived from the southern area and there is potential to upgrade the resource via the northern area.
Further drilling and a full final feasibility study are required and forestry approval before any mine development begins.