Perpetual Resources (ASX: PEC) is focused on developing multiple coal mines throughout Indonesia, and the newly minted company is trading at a premium in its first week of public life.
The stock has changed hands in the past week between the $0.21 and the $0.22 range, which is a 5% to 10% premium to the IPO price of $0.20 - with the prospectus offering 10 million shares at $0.20 to raise a minimum of $2 million, and oversubscriptions possible for another $1 million.
The company's plan is to supply thermal coal for export into China and India's growing demand for coal-fired power generation.
Perpetual Resources has entered into an agreement to acquire rights in relation to a coal mining and exploration tenement in West Sumatra, known as the Atoz Project.
Near term plans include implementing an exploration and development program across the Atoz Project, with an initial exploration budget of US$1,525,000 over 2 years.
The Atoz Project
The Atoz Project covers 192.08 hectares and is located 50 kilometres south of Padang in the central west of West Sumatra, where coal deposits are already throughout the district.
A plus for the project is access, which is via a bitumen road 76 kilometres south of Padang, with the journey taking 2 to 3 hours.
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