Cokal Limited (ASX:CKA, “Cokal” or “the Company”) confirms that,...

Cokal Limited (ASX:CKA, “Cokal” or “the Company”) confirms that, further to its announcement of 11 May 2018, Domain International Holdings Ltd (“Domain”) has advised that the first $1million under the funding term sheet (“Term Sheet”) is being sent and should be received by the Company this week. This will render the Term Sheet binding.

Further, the Term Sheet has been amended and clarified in respect of the timing of the equity interest in Cokal-BBM Pte Ltd to be acquired by Domain. That interest will be issued to Domain once the first target production of 2 million tonnes per year at BBM is achieved. Domain will provide all funding to get the BBM Coking Coal Project to the production rate of 2 million tonnes per year. Funding includes the provision of assets, equipment, contracting services or currency.

Domain and Cokal are currently establishing a joint working team to progress the development of the BBM Coking Coal Project and develop a project construction timetable.

Separately, Cokal remains in discussions for the funding and development of the BBM PCI Project with contractors.