Further to the previous announcements made by Pan Asia Corporation Limited (ASX: PZC) (Pan Asia or the Company), the Company provides the following information by way of update regarding Pan Asia's proposed acquisition of an interest in certain coal projects in Indonesia through the purchase of all of the issued capital of Innovation West Pty Ltd (Innovation West or IW) (Acquisition). 

Innovation West 

As previously announced, Innovation West is an Australian company which has an interest in a number of coal projects in Indonesia. Upon completion of the Acquisition of Innovation West, the Company will acquire a significant and balanced package of coal assets. Details of the asset package and key commercial points are summarised in this release. 

Pan Asia's Board and management are very enthusiastic as to the quality and prospectivity of these interests and are committed to completing the Acquisition as soon as is practicable. 

The projects being acquired provide: 

• Immediate cashflow via a financing provided for the expansion of production (Nadvara) 
• A flagship project that is in pre-development stage (TCM) 
• A flagship exploration project (BCKP / SIM) 
• A number of exploration projects & a pipeline of additional project opportunities 

The Company believes this combination of assets provides the Company with the platform to achieve its initial goal of becoming a significant supplier of competitively priced energy to Asia. 

The projects that Pan Asia gains access to via the Acquisition of Innovation West are detailed in Attachment A but are overviewed below: 

Immediate Cashflow Project –Financing Provided for Expansion of Production – Thermal Coal, East Kalimantan 

Nadvara (“NAD”) – financing and offtake rights 

• Current production ramping up to 1.2 Mt per annum & then 1.8Mt per annum. 
• Calorific Value averages 5,300 kcal / kg (adb). 
• Excellent location with haulage road, stockyard and conveyor loading jetty all operational. 
• JORC reserve of 5.84 Mt and Measured and Indicated resource of 19.63 Mt with additional potential. 
• USD 5 M advance already provided for expansion of production, repayable to IW from production plus royalty. 
• Offtake rights - first 4.8 million tonnes of coal sold to Noble Resources (“Noble"). 

Flagship Project - Pre Development – Thermal Coal, South Kalimantan 

Transcoal Minergy (“TCM”) – 75% interest 

• Targeting long life underground operations 
• Possible initial open pit. 
• Calorific Value of ~6,500 – 6,800+ kcal / kg (adb).
• Maiden JORC resource of 19.75Mt (Indicated) and 11Mt (Inferred). 
• Additional drilling now targeting 50Mt to 60Mt Exploration Target. 
• MOA‘s signed with significant international underground coal mining groups with existing operations in Indonesia. 

Flagship Exploration Project – Thermal Coal, East Kalimantan 

Baramega Citra Kutim Permai and Surya Ibrahim (“BCKP & SIM”) – right to earn a 50% interest

• 32,307 Ha with coal outcrops of significant thickness.
• Calorific Value expected between ~5,400-5,800 kcal / kg (adb).Historic exploration with 27 holes drilled.
• Initial exploration target of 50 to 70 Mt. 

Exploration Projects – Thermal Coal - East Kalimantan except where stated 

Jaya Kanigara (“JK”) – 80% interest South Sumatra 

• 4,500 Ha concession, highly prospective for large coal deposits. 
• Initial Exploration target of 10 to 20 Mt. 

Ratu Ayu (“RAY”) – right to earn a 50% interest 

 1,508 Ha adjacent to concessions hosting large tonnage of coal 

• Potential to form part of large regional project 
• Exploration target of 10 to15 Mt. 

Perdana Maju Utama (“PMU”) – Financing & offtake rights 

• Right to offtake a portion of production via a pre-financing. 
• Possible Q4 2010 development. 
• Calorific Value of ~5,200 - 5,700 kcal / kg (adb). 

Permata Buana, Seka Prima Energy and Sena Mediatama (“PB, SPE & SM”) – 80% interest 

• 3,177 Ha + with coal outcrop identified over 6 km of strike length. 
• Calorific Value expected between ~4,800-5,800 kcal / kg (adb). 
• Potential to form part of large regional project in Bengalon area 
• Exploration target of 20 to 30 Mt. 

More information, click here

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