Challenger’s mission is to become a profitable coal production company with unique property acquisition and development capabilities in the East Kalimantan coal sector.
Challenger is generating multiple smaller-scale coal properties of varying coal quality targets with logistical characteristics which lend themselves to near-term production potential. Initial cash flow will be applied to Challenger’s strategic objectives.
Challenger is generating multiple larger land position coal projects with varying coal quality targets. Challenger’s objective is to assemble a portfolio of such projects and, through exploratory drilling and evaluation, to assemble a sustainable production reserve with synergistic production, transportation logistics and marketable coal quality characteristics.
Challenger has an ongoing property acquisition program of project identification, initial evaluation, title investigation and, where properties meet either tactical or strategic objectives, the negotiation of options to purchase. Once an option has been secured, preliminary geological and in-depth title due diligence is undertaken. Geological evaluations include review of existing data, field mapping and sampling. If the project satisfies both legal and initial geological due diligence, a conditional purchase agreement is executed following which scout drilling is conducted. A successful scout drill program would lead to more extensive drill programs designed to confirm commercial quantities of coal.
Challenger is focused on the acquisition and development of coal projects in East Kalimantan, Indonesia.
Challenger has established an Indonesian subsidiary , PT Bestindo Energy, to facilitate the acquisition and development of its coal properties. Challenger has a team of exploration professionals with extensive experience in the Indonesian coal mining sector including geological, engineering and project operation and finance.
Challengers first Indonesian Coal project was, the Tabang Project located in East Kalamantan, Indonesia. The acquisition was structured as a conditional or option to purchase the shares of a private Indonesian company holding the Coal rights to the property. Initial exploration work has been completed and numerous coal outcrops have been mapped and sampled. The more advanced exploration IUP permit has been applied for and Challenger expects this to be issued by the end of May. Preliminary drilling of the interpreted coal seams has commenced and more advanced drilling will be initiated once the IUP permit has been issued.
Challenger has entered into five separate Memorandums of Understanding (MOU) related to one additional Tabang area coal property and four coal properties in other areas of interest in East Kalimantan. These MOU’s give the Company the exclusive right to enter into Conditional Share Purchase Agreements (CSPA) with the shareholders of the Indonesian companies which hold the exploration rights to these properties. Challenger is in the process of conducting its due diligence on the properties and will elect to inter into the CSPA’s if favorable results are obtained.
Pelangi, one of the MOU properties, is a large area coal application in the general Tabang area with geological characteristics similar to those of the Company’s Tabang project. The other MOU properties , are located in very close proximity to the Mahakam river or the coast which would allow for near term production if coal reserves are established. Initial due diligence will determine whether Challenger will proceed to the CSPA stage and initial exploration activities will determine the ultimate production potential of the projects.
Several additional acquisition opportunities are being currently investigated.