KANGAROO STRIKES A$277 MILLION INDONESIA COAL DEAL

By Neville D'Cruz

MELBOURNE, Dec 29 (Bernama) -- Kangaroo Resources Ltd (KRL) has bought a 99
per cent stake in a large thermal coal project in Indonesia.

KRL bought the stake in the Pakar thermal coal project in East Kalimantan
from PT Bayan Resources Tbk in a scrip deal worth A$277 million.

Pakar hosts a resource of 3.8 billion tonnes with reserves of 116 million
tonnes, KRL said.

After the deal is completed Bayan will emerge with a 57 per cent stake in
KRL.

"This acquisition will reposition KRL as a world-scale Indonesian coal
producer," the Australian company said in a statement.

The agreement with Bayan is subject to due diligence to be carried out
during the next 30 days.

-- BERNAMA