Document:

ex109.htm

EXHIBIT 10.9

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

 

MEMORANDUM OF UNDERSTANDING

 

No. 001/PT.IPC-PT.BRI, LTD/MOU/09/2011

 

BETWEEN

 

PT. INTEGRA PRIMA COAL

 

AND BORNEO RESOURCE INVESTMENTS LTD

 

CONCERNING

 

TAKEOVER

 

OF EXPLORATION, EXPLOITATION, TRANSPORT, AND SALES OF

 

MINERAL COAL IN THE MINING CONCESSION AREA, STOCKPILE &

 

JETTY OF

 

PT. INTEGRA PRIMA COAL

 

Ail

 

BAKUNGAN VILLAGE, LOA JANAN SUB-DISTRICT

 

 

JEMBAYAN VILLAGE, LOA KULU SUB-DISTRICT

 

KUTAI KARTANEGARA DISTRICT

 

EAST KALIMANTAN PROVINCE

 

 

On this day, Friday, the 7th (seventh) day of October, two thousand and eleven (2011), we the undersigned:

 

  

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[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

(1) IR. MARIO RONALDO SEMUEL DUMAIS, M. Si , as Director of Operations, residing in the complex of [***], as proxy of the shareholders or directors of PT. INTEGRA PRIMA COAL, domiciled in South Jakarta, by virtue of Deed Nc. 17 dated September 29, 2006, last amended by Deed No. 7 dated March 08, 2010. Both were drawn up before Mr. Benediktus Andy Widyanto, SH, Notary in Tangerang, by virtue of a Power of Attorney drawn up on

 

hereinafter referred to as the:

 

"FIRST PARTY"

 

(2) GRACE SOPHIA JUDY SARENDATU, SH, residing in [***], as proxy of NILS ANDREW OLLQUIST, residing at [***], as President Director of BORNEO RESOURCE INVESTMENTS LTD., having its principal office at 17'• Floor Wheelock House, 20 Pedder Street, Central, Hong Kong, in this matter acting for and on behalf of the Company, and hereinafter referred to as the:

 

"SECOND PARTY"

 

The FIRST PARTY and the SECOND PARTY shall hereinafter be referred to collectively as the "PARTIES" and individually as the "PARTY".

 

ARTICLE 1

 

PURPOSE

 

The purpose of this MEMORANDUM OF UNDERSTANDING is to make investment in the form of TAKEOVER of exploration, exploitation, and drilling of mineral coal between the FIRST PARTY and the SECOND PARTY, taking place in the mining concession area of PT. INTEGRA PRIMA COAL owned by the FIRST PARTY, covering an area of 1253 ha (one thousand, two hundred and fifty-three hectares) and located in the Bakungan Village, Loa Janan Sub-District, Kutai Kartanegara District, East Kalimantan Province, under the Mining Exploration License (IUP Eksplorasi) No. 540/020/IUP ER/MB- PBAT / I/2011 dated January 25, 2011 and the Mining Production License (IUP Produksi) in the process of KUTAI KARTANEGARA Mining and Energy Office with coordinates as attached.

 

  

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[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

ARTICLE 2

 

The PARTIES hereby agree of and consent to the takeover phases as follows: :

 

2.1 Execution of this MEMORANDUM OF UNDERSTANDING;

 

2.2 The first (initial) phase of Survey and/or Due Diligence shall be conducted by the SECOND PARTY in the Mining Concession Area as referred to above, including sampling or sample analysis;

 

2.3 The second (detailed) phase of Survey and/or Due Diligence shall be conducted by the SECOND PARTY in the Mining Concession Area as referred to above, including sampling or sample analysis;

 

2.4 Execution of the Deed of Agreement for Coal Mining Takeover at the Notary Office between the FIRST PARTY and the SECOND PARTY;

 

2.5 Exploration and Exploitation activities as well as all investments required for constructing facilities and infrastructure and other licensing fees shall be funded entirely by the SECOND PARTY.

 

ARTICLE 3

 

3.1 The FIRST PARTY agrees to provide a maximum period of 14 (fourteen) working days as of the date of execution of this MEMORANDUM OF UNDERSTANDING to the SECOND

 

PARTY to conduct the FIRST PHASE OF SURVEY in the coal mining concession area as referred to above;

 

3.2 The FIRST PARTY shall accompany the SECOND PARTY in undertaking all sorts of activities in order to identify the potential of mineral reserves and coal quality in the mining concession area, which, among others, are activities in the form of test pits / drilling, and sampling of mineral coal for testing in the laboratory;

 

3.3 The costs of survey, test pit / drilling, and sample analysis shall be entirely borne by the SECOND PARTY;

 

3.4  In the event that., upon conducting the first phase of survey, the SECOND PARTY finds that the coal mining concession area is riot feasible for mining and decides to discontinue this cooperation, then this MEMORANDUM OF UNDERSTANDING shall be considered to be terminated automatically without any compensation from any PARTY;

 

3.5 In the event that the first phase of survey is declared feasible, then the SECOND PARTY shall continue with the second phase of survey by conducting a more thorough prospecting.

 

  

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[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

ARTICLE 4

 

4.1 The FIRST PARTY agrees to provide a maximum period of 1 (one) month, in 14 (fourteen) working days (as set out in Article 3.1) as from the date the FIRST PHASE OF SURVEY is conducted, to subsequently conduct the SECOND PHASE of SURVEY in a more technical and thorough manner in the coal mining concession are above with the proviso that the SECOND PARTY shall pay Earnest Money in the sum of Rp.300,000,000, - (three hundred million Rupiah) by transferring it to the account number [***] of BCA Abul Hasan Samarinda

 

Branch registered under the full name of Mario Ronaldo Semuel Dumais, Ir, and an individual receipt shall be issued for the receipt thereof;

 

4.2 The FIRST PARTY shall accompany the SECOND PARTY in undertaking all sorts of activities in order to identify the potential of mineral reserves and coal quality in the mining concession area, which, among others, include activities in the form of test pits / drilling, and sampling of mineral coal for testing in the laboratory;

 

4.3 The costs of survey, test pit / drilling, and sample analysis shall be entirely borne by the SECOND PARTY;

 

4.4 In the event that the survey results indicate economic feasibility for mining and the SECOND PARTY decides to continue this cooperation to the next phase, namely the exploration and mining activities, then the FIRST PARTY and the SECOND PARTY agree to draw up a Deed of Agreement for Coal Mining Takeover before a Notary.

 

ARTICLE 5

 

CLOSING

 

5.1 Any matter not provided for in this Memorandum of Understanding shall be dealt with by the PARTIES in such reasonable manner as they shall otherwise think fit;

 

5.2 IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be duly executed by their authorized representatives on the date and year first above written, freely and voluntarily and under no compulsion or duress, in duly stamped and equally valid counterparts.

 

  

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[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

Stamp Duty of Rp 6,000,-

 

 

	FIRST PARTY	 	SECOND PARTY	 
	PT. INTEGRA PRIMA COAL	 	BORNEO RESOURCE INVESTMENTS LTD	 
	Signed. Sealed	 	signed	 
	/s/ Ir. Mario R.S. Dumais, M. Si	 	/s/ GRACE S.J. SARENDATU, SH.	 
	Director of Operations	 	 	 
	Sales Proxy of the Board of Directors	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

Number: 1210/W/2011

 

Has been registered in the administrative records

 

(Gewaarmerkt)

 

Balikpapan, October 8, 2011

 

signed

 

(SITI RAHAYU, SH)

 

NOTARY IN BALIKPAPAN

 

 

 

 

5ex1010.htm

EXHIBIT 10.10

 

SHARES SALE PURCHASE PRE-CONTRACT AGREEMENT

 

Between

 

BORNEO RESOURCE INVESTMENT LTD

 

And

 

PT. BATUBARASELARAS SAPTA

 

Today, on Thursday, March 15th, 2012, we the signed

 

below:

 

I. GRACE SOPHIA JUDY SARENDATU, SH, in this matter acting under the Power of Attorney which has been made in Hongkong, on October 4th, 2011, therefore legally for representing and acting for and on behalf of BORNEO RESOURCE INVESTMENT LTD in which its head office is in Hongkong, a company established under the law of Hongkong, ROC. As the PARTY of PURCHASER (the "Purchaser")

 

II. REVLI O.P MENDAGIE SE, President Director, therefore legally for representing and acting on behalf of PT. BATUBARASELARAS SAPTA, a company established under the law of Republic of Indonesia, domiciled in Jakarta, the holder of Work Contract Concession and Mining Land ofCoal with the Government of Republic of Indonesia date of October 20, 1997 and by the Decree of the Ministry of Energy and Natural Resource of the Republic of Indonesia, on the Second Extension Phase of Exploration Activity

 

No.367K/30/DJB/2012 date of February 3r0, 2012 of which its wide is 93.000 Ha its prospective area is 68.360 Ha, which is located in the Regency of Paser, the Province of East Kalimantan.

 

As the PARTY of SELLER (the "Seller")  Furthermore, the Parties agree to execute this Share Sale Purchase Pre-Contract Agreement of which is and would be the MOU of Share Sale Purchase Contract between the parties under the conditions as follow:

 

1. Structure of Transaction;

 

The Purchaser intends to acquire seventy five percent (75%) shares of the Seller's company. The Parties agree that such acquisition shall be structured as Shares Sale Purchase Transaction.

 

2. Price of acquisition shall be paid as follow:

 

A. Purchasing value of total company's shares is the sum of US$ 300.000.000, 00 (three hundred million, United States of America Dollar).

 

B. The Value of Take Over Acquisition is seventy five percent (75%) of which is the sum of US$ 225.000.000, 00 (two hundred and twenty five million, United States of America Dollar).

 

C. In the execution of this Agreement, the Purchaser shall settle his First Payment for 1% of the value of 75% shares acquisition, or the sum of US$ 2.250.000, 00 (two million and two hundred and fifty thousand, United States of America Dollar), therefore this Agreement shall be exclusive, and the Seller shall not be able to offer to other whosoever third parties.

 

  

1

  

 

D. The Purchaser shall perform Legal Due Diligence (LDD) for 1 month after the execution of this Agreement, in related agencies, such as; Department of Energy and Mineral Resources of the Republic of Indonesia, Department of Law and Human Right of the Republic of Indonesia, and Local Court, as well the Supreme Court of the Republic of Indonesia regarding to the status and all licenses of PT. BATUBARASELARAS SAPTA. After the Legal Due Diligence (LLD) is completed, the Parties agree to execute the Shares Sale Purchase Agreement (SSPA) or the binder of Share Sale Purchase.

 

E. After performing Legal Due Diligence (LLD), the Partiesshall propose the proposal for approval from the related agencies, such as: Department of Energy and Mineral Resources of the Republic of Indonesia, Department of Law and Human Right of the Republic of Indonesia, and the IndonesianInvestment Coordinating Board (BKPM) for Foreign Investment.

 

F. During six (6) months since the First Payment, the Purchaser or Borneo Resource Investment Ltd, shall perform exploration for Boring Estimation in order to obtain the report of Coal Deposit Amount according to the result of JORC, and the research expense of JORC shall be borne by the Borneo Resource Investment Ltd, which shall be calculated in the Price of Share Acquisition. Then, the Purchaser or Borneo Resource Investment Ltd will settle the Second Payment to the Seller or PT. Batubaraselaras Sapta for nine percent (9%) or the sum of US$ 20.250.000,00 (twenty million and two hundred and fifty thousand, United States of America Dollar)

 

G. After the research result of the JORC has been obtained and according to the Share Sale Purchase Agreement (SSPA) mentioned above, as well the Approval of the Indonesian Investment Coordinating Board (BKPM) on the change of PT. BATUBARASELARAS SAPTA of which changes into Foreign Investment, than the Purchaser shall settle full settlement of Share Acquisition as mentioned herein, which its stages of payment as follow:

 

1. The Third Payment is twenty percent (20%) that is the sum of US$ 45.000.000,00 (forty five million, United States of America Dollar).

 

2. The Fourth Payment shall be performed within the next one (1) month for twenty percent (20%) that is US$ 45.000.000, 00 (forty five million, United States Dollar)

 

3. The Fifth Payment shall be settled within the next one (1) month for fifty percent (50%) that is US$ 112.500.000, 00 (one hundred and twelve million and five hundred thousand, United States of America Dollar)

 

Whatsoever matters of which have not been governed under this Share Sale Purchase Pre-Contract Agreement shall be further governed deliberately and consensually, equipped by the addendum of which shall be mutually executed by the Parties and shall be a unity and unseparated part of this Share Sale Purchase Pre-Contract Agreement.

 

IN WITNESS, this SHARES SALE PURCHASE PRE-CONTRACT AGREEMENT is made in good faith to be complied and executed by the Parties, and made in double two (2) each of which is original and has the same content, and upon the appropriate seal and has equal legal entity.

 

	The First Party  	 	The Second Party
	 	 	 
	Borneo Resource Investment Ltd	 	PT. Batu Baraselaras Sapta
	 	 	 
	(Signed)	 	(Signed upon Stamp)
	 	 	 
	/s/ Grace S.J Sarendatu, SH	 	/s/ Revli O.P Mandagie, SE

 

 

 

 

 

 

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