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Macro Corporation continues strategic venture into Indonesian coal sector, shares rise 83%

Macro Corporation (ASX: MAC) has drawn some investor attention of late which propelled shares 83% higher to an intra-day high of A$0.11 yesterday, up from a close of $0.06 on Tuesday 19 July, prompting the ASX to issue a price and volume query.

The spike occurred on the exchange of almost 1.3 million shares between the close of trade on 19 July and the close of trade yesterday.

Macro previously announced its plans to divest its tourism assets and focus on coal mining opportunities.

The company is investigating potential acquisitions in Indonesia and is in preliminary discussions with coal mine owners.

In its response to the ASX, Macro said at this stage the discussions are “preliminary, relatively speculative in nature and remain incomplete”.

“We do not consider that there is anything imminent that would warrant requesting a trading halt.”

In March, Macro announced it plans to acquire a 70% equity interest in PT Sarmar Jaya Cemerlang, which owns the mining rights to a coal concession near South Barito, Central Kalimantan Province in Indonesia.

Consideration for the acquisition is US$2 million and a further royalty payment of US$5.8 million progressively.

Macro’s strategy is to secure a long term offtake agreement from a partner that will undertake all exploration and development activities in exchange for the future delivery of coal.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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