CALGARY, ALBERTA -- (Marketwire) -- 02/04/13 -- Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE: CDE) is pleased to announce that, through its wholly owned subsidiary, PT Bestindo Energy, it has entered into an Exclusivity Agreement relating to the right to mine and market coal from the KEM coal project in Central Kalimantan, Indonesia.
The Exclusivity Agreement with CV Kara Elmas Madenleri ("KEM") gives Challenger the exclusive right, for a period of sixty days, to conduct due diligence on the KEM coal project and to enter into a Mining Operation - Production Agreement for the project. The Mining Operation - Production Agreement will give Challenger full control of all coal production and marketing within the KEM project area.
KEM owns 100% of the KEM Coal Project which is located in the Murah Teweh district of Central Kalimantan. The KEM Project is located 12 kilometers east of the Barito River, the main river transportation route for the area.
The KEM Project covers 335ha with an IUP Operation Production license in place. KEM is a multi-seam high-quality thermal coal project with existing infrastructure in place to enable an early start to production. Infrastructure in place includes a 12km haul road and loading jetty.
Coal can either be sold FOB barge at the jetty site or transhipped further downstream to a stockpile for later, direct loading on the Mother Vessel for shipment to the final consumption markets.
The Company has staff onsite to complete due diligence, to begin mine plan drilling and to prepare infrastructure agreements. The Mining Operation - Production Agreement with KEM is planned to be signed later this month.
"This is a very important development for Challenger", states Ranjeet Sunder, President and CEO of Challenger. "The KEM Project gives us the potential to generate near-term cash flow which will provide funding for our Tabang Project development and will enable us to capitalize on other high-quality opportunities, while minimizing dilution to our shareholders during these difficult capital markets. We view this project as having very low risk and relatively low capital requirements which are both key elements in our Indonesian coal strategy"
The Qualified Person (as defined by NI 43-101) responsible for the review, verification and approval of the technical material presented in this news release is Mr. Andre Talaska, a director of PT Bestindo Energy, a wholly owned subsidiary of Challenger.
Challenger Deep Resources Corp. is an exploration company focused on the Asian coal industry. Challenger's business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Statements in this press release may contain forward-looking information including, statements regarding exploration and production and marketing activities. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration and mining permits, surface access and other licenses from Indonesian regulatory authorities, exploration results, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed exploration and development programs in Indonesia or other project acquisitions will be completed or, if completed, will be successful or that coal production and sale will be achieved. Readers are cautioned that there has been insufficient exploration to define a mineral resource on the KEM Project and that it is uncertain when or if the KEM Project will be put into production.
The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Challenger Deep Resources Corp.
Challenger Deep Resources Corp.
Kirk Gamley or Mas Kobuchi
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