KOPEX Funding To Accelerate Development of Pan Asia Corporation Limited Flagship Coal Project

14:29 AEST Apr 18, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - A significant agreement between Pan Asia Corporation Limited (ASX: PZC) and underground coal group KOPEX (WAR: KPX), has established a world-class partnership that paves the way for accelerated development of the Company's flagship TCM coal project.

Pan Asia CEO Alan Hopkins said having a closer engagement with a large, experienced underground coal operator with the capability to deliver TCM to production, was a major step forward in advancing this project.

The agreement incorporates funding support from KOPEX for the next phase of infill drilling, as well as the bankable feasibility study, in return for pre emptive rights to participate in the project (excluding the washing plant, power plant and sale of the coal).

KOPEX is currently undertaking preliminary studies on the project and is well advanced in this work, with results due next month.

'KOPEX is a world leader in underground coal mining with the capacity to undertake mining operations as well as providing the required mining equipment,' Mr Hopkins said.

'With its significant underground coal operating experience in Kalimantan, KOPEX has recognised the value of our TCM project by identifying it as a priority for their involvement.

'We are now ahead of schedule on our deliverables for the project and as we move through to bankable feasibility study stage, we anticipate adding considerable value to our holding.'

The TCM project has an initial JORC compliant resource of 53Mt (inferred and indicated) of high calorific value coal (average 6550 kcal/kg). Being adjacent to PT Arutmin's operating ATA mine, TCM also benefits from its proximity to well established infrastructure.


TCM Project Overview

The TCM project covers 3,440Ha in the Mantewe District, Tanah Bumbu Regency, South Kalimantan Province, Indonesia. The project has a Government-approved IUP production license, granted for 15 years which is extendable for a further two ten-year periods under Indonesia's new mining laws.

Mining of the project will be underground, using long-wall mining techniques. KOPEX are currently well advanced with their preliminary engineering study as to the expected optimum scale of operations.


About KOPEX

The Kopex Group offers comprehensive solutions for underground mining. It is a respected and acknowledged manufacturer and supplier of high-class machinery and equipment as well as modern mining technologies and specialist underground mining consultancy works. The Kopex Group comprises over 50 companies worldwide whose activities are complementary to each other during project execution. Kopex is listed on the Warsaw Stock Exchange.

Kopex Mining Contractors has provided an initial geological assessment of the resource and has the ability to complete conceptual, pre feasibility/feasibility studies and underground mine design through to provision of all mining equipment, underground mine construction and operation.


About Pan Asia Corporation Limited:

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

The Company aims to be a major supplier of key resources into the expanding Asian markets and has a balanced mix of thermal coal assets in Indonesia including:

1) A Flagship Pre Development project that has a JORC resource in South Kalimantan (TCM)

2) A Flagship Exploration project that has large tonnage potential (BCKP)

3) Cashflow from production via its financing and offtake arrangements of projects in East Kalimantan with Ranrich

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

The evaluation and development of the current projects, in addition to the many new opportunities arising from a strong local partner network, will be the foundation for the Company's aim to become a significant supplier of key resources to the growing Asian markets over the coming years.

Pan Asia brings together an experienced Board and management team with a proven track record in the identification, funding and development of resources projects around the world.



Contact:

Alan G. Hopkins
Chief Executive Officer
Pan Asia Corporation
Tel: +61-8-9381-5819