BlackGold Natural Resources Limited ("the company") announced that, on 15 September 2017, the Company entered into a Heads of Agreement ("HOA") with various parties to form a new consortium in relation to an ongoing cooperation project for the development, construction, operation and maintenance of a 2 x 300 MW coal-fired power plant in Riau province, Sumatra, Indonesia (the "Riau-1 Project"). The HOA sees the addition to the Consortium of certain subsidiaries of PT Perusahaan Listrik Negara ("PLN"). The HOA supersedes both the consortium agreement and conditional term sheet between PT Samantaka Batubara and China Huadian Engineering Co., Ltd. that were disclosed in the announcements. The parties to the Consortium are: (a) PT Pembangkitan Jawa-Bali; (b) China Huadian Engineering Co., Ltd. ("CHEC"); (c) the Company; (d) PT PLN Batubara ("PLN BB"); and (e) PT Samantaka Batubara ("PT SB"). PJB is, in principle, intended by PLN to be assigned the right to develop, build, finance, manage, engineer, operate and maintain the Riau-1 Project. PLN BB, also a wholly-owned subsidiary of PLN, is, in principle, intended by PLN to be assigned the right to secure the coal supply to the Riau-1 Project by way of cooperation with a suitable coal mining company. Upon PJB's receipt of the Assignment, the Consortium shall participate in a submission process for the provision of electrical supply to PLN (the "Application"), in accordance with the requirements of a procurement document (the "TOR") which shall be issued by PLN. Should the Application be successful, the Consortium will be awarded the Riau-1 Project by way of a Letter of Intent ("LOI") from PLN. Subject to the receipt of the LOI, a joint venture company ("NewCo") shall be established by the Consortium. It is intended that NewCo will enter into the relevant power purchase agreement ("PPA") with PLN. Following signing of the PPA, NewCo shall construct and commission the Riau-1 Project to enable it to produce and supply electrical power to PLN.