Pan Asia Corporation Limited - Completes Purchase Of Indonesian Coal Assets

09:28 AEST Nov 30, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Emerging Australian resources company Pan Asia Corporation Limited (ASX: PZC) is a step closer to achieving its goal of becoming a major supplier to expanding Asian markets with the acquisition of a pipeline of thermal coal projects in Indonesia.

Finalised yesterday with overwhelming shareholder approval at the company's Annual General Meeting, the purchase of Innovation West Pty Ltd has given Pan Asia a balanced mix of assets, including one with immediate cashflows from a four-year, 4.8 million tonne off-take agreement with Noble Resources.


The other assets include:

- A Flagship Pre Development project in South Kalimantan (the TCM Coal Project) that has an initial JORC resource of 19.7Mt (Indicated), 11Mt (Inferred) and an exploration target of 50-70Mt

- A Flagship Exploration project, BCKP Coal Project, that has large tonnage potential with an exploration target of 50-70Mt +

- A Pipeline of other project opportunities covering each of the above categories.

CEO Alan Hopkins said finalisation of the Innovation West acquisition had put Pan Asia firmly on the path to achieving its key objective of becoming a significant coal company in Indonesia within the next three years.

'We have a solid strategy to use our Australian expertise and strong Indonesian partnerships to explore and develop these projects and identify and target new opportunities to feed on the growth markets of Asia,' Mr Hopkins said.

'This strategic approach, supported by our existing cashflows from the Nadvara off-take agreement, and extensive international financial network, puts Pan Asia in a good position to achieve its' targets which will support significant re-ratings.'

Shareholders at yesterday's AGM also agreed that the issued capital of the company be consolidated on the basis that:

a) every twenty (20) Ordinary Shares be consolidated into one (1) Ordinary Share;

b) every twenty (20) Performance Shares be consolidated into one (1) Performance Share and

c) every twenty (20) Options be consolidated into one (1) Option, on the terms and conditions set out in the Explanatory Statement.

Approval also was given for the Directors to allot and issue up to 5,000,000 Ordinary Shares (on a post-Consolidation basis) for at least A$0.20 per Ordinary Share to raise up to A$1,000,000.


About Pan Asia Corporation Limited:

Pan Asia Corporation Limited (ASX:PZC) is a rapidly growing diversified resources company listed on the Australian Securities Exchange with offices in Perth, Australia and Jakarta, Indonesia.

The Company aims to be a major supplier of key resources into the expanding Asian markets and is well advanced in its due diligence and requirements for regulatory and shareholder approval for the acquisition of a number of significant coal and manganese assets in Indonesia. This diversified portfolio of assets includes projects in both production & exploration stages as well as a significant opportunity to participate in key infrastructure development which will complement the existing coal projects held by the Company.

The evaluation & development of the current suite of assets in addition to new opportunities that arise from a strong local partner network will be the foundation for Pan Asia's aim to become a top tier coal & manganese company in Indonesia over the next three years. An extensive international financial network provides support for the Company's rapid growth plans.



Contact:

Pan Asia Corporation Limited
Alan G. Hopkins, Chief Executive Officer
Tel: +61-8-9381-5819
http://www.panasiacorp.com.au