SHARES of Indonesia-focused coal miner BlackGold Natural Resources rose on Thursday amid active trading, after it announced India&rsquo s S Lad Group sent a non-binding letter of intent (LOI) for a proposed acquisition and tie-up.

 

The Catalist-listed counter gained 66.7 per cent or 0.8 Singapore cent to two cents as at 11.45am, with nearly 92.2 million shares changing hands. It was the most heavily traded by volume on the Singapore bourse for the morning.

 

In its letter dated June 27, the Indian iron ore miner proposed a strategic collaboration on the BlackGold group&rsquo s mining assets and an acquisition of BlackGold, the latter said on Thursday night.

 

According to S Lad Group, the Bangalore-based company supplies iron ore and has more than five decades of experience in the mining business. The Indian conglomerate has diversified its mining business into several units including the manufacturing of pig iron.

 

S Lad Group also has substantial interest in more than a dozen diversified firms in industries such as information technology, real estate, entertainment and aviation. These include property developers, movie and television production companies and an air cargo firm.

 

BlackGold said the potential collaboration is expected to achieve synergies for its operations as it will be able to tap the Indian company&rsquo s &ldquo extensive&rdquo mining expertise.

 

&ldquo In addition, there is potential to create inroads to new market opportunities in India for BlackGold,&rdquo it noted.

 

Soh Sai Kiang, chairman of BlackGold, said both companies share a commitment to support the long-term growth prospects of energy demand in Asia.

 

The LOI is intended to be a basis for further negotiations between the two parties and does not constitute any legally binding obligations.

 

It is subject to certain conditions precedent, including mutually satisfactory due diligence to be conducted by S Lad Group and BlackGold.

 

BlackGold said: &ldquo Shareholders should note that the board is still considering the merit and formulating a response with respect to the possible transaction.&rdquo