Zamia Metals Ltd. is set to acquire Kirkham International Pte. Ltd., which owns a 4,798-hectare mining permit for a coal mine in Central Kalimantan, Indonesia.

The company has entered into a binding share sale and purchase agreement to purchase all of the shares in Kirkham for A$24.3 million, to be satisfied by issuing 607.50 million common shares, after undertaking a 1-for-10 consolidation, at a price of 4 Australian cents per share.

Kirkham owns 95% of PT Borneo Coal Indonesia, the subsidiary that holds the license, while the remaining 5% is owned by Indonesian interests, according to the Oct. 11 statement.

Zamia will also conduct a capital raising for at least A$2.5 million by issuing post-consolidation ordinary shares at 3 cents per share.

If the deal goes through, Zamia's current board, excepting executive chairman Andrew Skinner, will resign and be replaced by two nominees from Kirkham and an independent director.