Singapore's Noble Group will take a 5.34 per cent stake in Pan Asia Corporation and help it ramp-up its TCM underground high CV thermal coal project in South Kalimantan in Indonesia.
The company will issue seven million new shares to Noble priced at seven cents each.
Pan Asia chief executive Alan Hopkins said the two parties had a shared motivation to expedite the advancement of production at TCM, and to pursue other growth opportunities.
"In particular, Noble has a strong understanding of and presence in the Indonesian coal industry and can provide Pan Asia with invaluable support in delivering the TCM project," he said.
Pan Asia is updating a feasibility study for its 70 per cent owned TCM project ahead of expected development and first production in 2014.
Formerly Sam's Seafood, Pan Asia is chaired by former Deloitte chief executive Domenic Martino.Pan Asia shares were up 0.7 cents, or 11.11 per cent, to seven cents at 8.45am.
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