EARTH's share swap for Indonesian mine's ownership approved
Energy Earth Plc (EARTH)'s shareholders unanimously approved the company's plan to raise the capital and swap shares for stake in an Indonesian mine.
The shareholders today approved the capital increase by Bt804.9 million to Bt3.03 billion. Of total, 444.5 million shares will be reserved for warrants to be issued to existing shareholders and 331.46 million shares will be issued to existing shareholders of PT Tri Tunggal Pitriati (TTP) at the price of Bt3.33 apiece or a total of Bt1.1 billion.
TTP is a licensed miner in Indonesia, with coal reserves in two mines of 7.4 million tonnes. All is bound for transporation to clients in China within four years.
"The acquisition will solidify EARTH's coal reserves, in line with higher demand. This will also help expand our client base overseas, particularly China where demand is high. We foresee higher revenue and gross margin," said Khajohnpong Khamdee, managing director of Energy Earth.
The company expects that next year, its coal sale volume would reach 3.2 million tonnes, from 1.2 million tonnes this year. The annual revenue then could hit Bt10 billion.
