Geo Energy hits coal reserves targets; mandatory offer for notes falls away
INDONESIAN coal miner Geo Energy Resources said that the mandatory offer to purchase the 8 per cent senior notes issued by its wholly-owned unit, Geo Coal International, will fall away on Sunday.
It has satisfied the minimum requirement of 84 million tonnes of regulatory-compliant coal reserves that it had to meet. Under a covenant, Geo Coal International would have had to make a mandatory offer to purchase all of the outstanding notes, due 2022, if it did not meet the minimum coal reserve requirement.
Geo Energy said that its two qualified mines in Indonesia, Sungai Danau Jaya (SDJ) and Tanah Bumbu Resources (TBR), have produced 4.9 million tonnes and 7.7 million tonnes respectively in 2020.
The latest independent Joint Ore Reserves Committee (JORC) report was issued on Feb 19, 2021, on the combined JORC coal reserves for SDJ and TBR as at Dec 31, 2020. Earlier, Geo Energy had extended the licences of SDJ and TBR to May 2027 and January 2028 respectively.
Geo Energy has on Sunday delivered the notification to the Trustee of the Notes, Bank of New York Mellon, and the report of the Qualified Person (SMG Consultants) to certify the qualified reserves of SDJ and TBR. Based on the above, the mandatory offer to purchase covenant is satisfied and falls away, it said.
Shares of Geo Energy closed at S$0.172 on Friday before the announcement, up S$0.002 or 1.18 per cent.
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