Kangaroo Resources says it has received shareholder approval to complete the $277 million acquisition of the Pakar coal project, which will make the vendor Kangaroo's largest shareholder.
The shareholder support is the final required approval to complete the deal with Indonesian coal conglomerate PT Bayan Resources, which was first announced in December last year.
The Pakar project has an estimated JORC Code Total Coal Resource of 3,019 million tonnes of thermal coal
Under the terms of the transaction, Kangaroo has issued 2.3 billion new shares to Bayan and other parties, giving Bayan a controlling 56 per cent shareholding in Kangaroo.
"Bayan Resources is an experienced and capable partner with the expertise to assist Kangaroo deliver on all its objectives within the coal strategy it has developed" Kangaroo chairman Peter Richards said.
"We welcome Bayan not only as a shareholder but also as an operating partner and a proven marketer of coal.
"The board of Kangaroo believes that this deal will add significant value for all Kangaroo shareholders going forward".
Kangaroo shares surged on the news, closing up 18.5 per cent at 16 cents.
