Friday, 09 Mar 2012
Xstrata Coal has agreed to acquire the Sukunka hard coking coal deposit from Talisman Energy Inc for USD 500 million in cash, subject to customary conditions.
Sukunka is located in the Peace River Coalfield of northern British Columbia, contiguous with First Coal Corporation and Lossan tenements acquired by Xstrata Coal in August and October 2011 respectively.
Sukunka has an NI 43-101 compliant coal resource of 236 million tonnes in the Measured and Indicated categories. Norwest Corporation has completed a pre-feasibility study for a longwall mine producing hard coking coal. Xstrata Coal’s technical studies indicate the potential to realise further value from the resource.
Mr Peter Freyberg CEO of Xstrata Coal said that “Based on our due diligence and technical analysis, Sukunka has the potential to be a high quality metallurgical coal mine. Once developed, Sukunka would meaningfully increase our exposure to hard coking coal, while unlocking synergies with our neighbouring assets in the Peace River coalfield and providing additional regional scale.”
Source - Xstrata
Showing posts with label acquire coal mine. Show all posts
Showing posts with label acquire coal mine. Show all posts
Friday, March 9, 2012
Saturday, January 28, 2012
Griffin coal negotiations fail
Saturday, 28 Jan 2012
The latest round of negotiations at Lanco's Griffin coal mine have failed. A settlement is yet to be reached in the battle between unions and the company over pay and working hours.
According to the Collie Mail, unions previously believed they had come to an agreement with Lanco over the proposed shift changes. However the company is still pushing for an increase in shift times and hotseat changeovers on site, with the aim to enhance production fourfold.
CFMEU secretary Mr Gary Wood stated that Lanco will not be able to support its motion. He said that "There is no way in the world they can get this up. They won’t be able to get it up before arbitration. We have provided documents showing it (the longer shift time) is inappropriate from a fatigue point of view.”
He added that "It is also is inappropriate from a community point of view. There are only 24 hours in a day and the workers need to travel, prepare for work and recover."
Mr Wood stated that while the most recent round of negotiations had failed, talks are progressing. He said that "We had only half a day with Griffin on Monday and are getting close. But nothing is agreed until everything is agreed."
The major sticking point remains the increased shift hours.
Mr Wood further said that "There is no firm position one way of the other, but we are reasonably confident that common sense on the safety issues will prevail.”
(sourced MiningAustralia.com.au)
The latest round of negotiations at Lanco's Griffin coal mine have failed. A settlement is yet to be reached in the battle between unions and the company over pay and working hours.
According to the Collie Mail, unions previously believed they had come to an agreement with Lanco over the proposed shift changes. However the company is still pushing for an increase in shift times and hotseat changeovers on site, with the aim to enhance production fourfold.
CFMEU secretary Mr Gary Wood stated that Lanco will not be able to support its motion. He said that "There is no way in the world they can get this up. They won’t be able to get it up before arbitration. We have provided documents showing it (the longer shift time) is inappropriate from a fatigue point of view.”
He added that "It is also is inappropriate from a community point of view. There are only 24 hours in a day and the workers need to travel, prepare for work and recover."
Mr Wood stated that while the most recent round of negotiations had failed, talks are progressing. He said that "We had only half a day with Griffin on Monday and are getting close. But nothing is agreed until everything is agreed."
The major sticking point remains the increased shift hours.
Mr Wood further said that "There is no firm position one way of the other, but we are reasonably confident that common sense on the safety issues will prevail.”
(sourced MiningAustralia.com.au)
Thursday, January 26, 2012
Borneo Seeks to Acquire Thermal Coal Mining Rights in Kalimantan
Thu, 25 January, 2012Borneo Resource Investments Ltd. (OTCPK: BRNE) said it seeks to acquire highly prospective thermal coal mining rights primarily in East Kalimantan, Indonesia, a highly-stable mining jurisdiction.
"Our objective is to add value through grassroots exploration and target refinement and then seek option or joint venture partners through to production," Borneo Chairman and CEO, Nils Ollquist commented.
Borneo's business model is that of a Project Generator and coal trader. The Project Generator model is particularly suited to the company's ongoing interest in the East Kalimantan province where Borneo has a wealth of intellectual capital and experience.
To add to cash flow and reduce the need for dilutive financings to fund its activities, Borneo engages actively in coal trading. Management seeks to identify and broker transactions between buyers and sellers, earning a profit as the intermediary.
The company currently has interests in two thermal coal exploration projects in East Kalimantan province with an estimated resource potential of 12-14 million metric tonnes, pending confirmation by geological studies.
The first is an 80% interest in PT Chaya Meratus Primecoal, an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin of south east Kalimantan.
The second is an exploration and production license covering 1,300 hectares in the East Kalimantan province through an agreement with the concession holder, PT Integra Prime Coal.
The company also has an extensive pipeline of additional projects under review for potential licensing or acquisition. East Kalimantan has the distinction of being at the epicenter of thermal coal mining and exports from Indonesia.
For context, most of the country's coal mines, including the largest, are located in East and South Kalimantan and two of the world's largest coal mining companies, BUMI and Adaro Resources operate in the region. Our concessions show extensive coal formations at the surface, and preliminary field work by our field geologists give us a high level of confidence in the resource estimates previously mentioned.
Currently our projects do not have JORC-compliant resource estimates, which is one of the standards used in the mining industry to assure shareholders and other stakeholders that the resources a company says they have are in fact present.
"We are actively engaged in securing JORC estimates for both of our concessions, and will do so for all additional concessions we acquire. This will significantly increase our company's attractiveness to institutional investors," Borneo said.
(sourced:Theindonesiatoday.com)
Thursday, December 22, 2011
Bid for coal mine near Eneabba rejected
Thursday, 22 Dec 2011
It is reported that a bid by Central West Coal to develop a coal mine south of Eneabba has been rejected.
The Environmental Protection Authority considered five appeals against the development. It concluded the proposal could not meet its environmental objectives for protecting flora and fauna.
Mr Bill Marmion Environment Minister said the EPA decision is justified and appropriate. He will now consult with the relevant environmental authorities to determine whether or not the proposal can be implemented and under what operating conditions.
(sourced from www.abc.net.au)
It is reported that a bid by Central West Coal to develop a coal mine south of Eneabba has been rejected.
The Environmental Protection Authority considered five appeals against the development. It concluded the proposal could not meet its environmental objectives for protecting flora and fauna.
Mr Bill Marmion Environment Minister said the EPA decision is justified and appropriate. He will now consult with the relevant environmental authorities to determine whether or not the proposal can be implemented and under what operating conditions.
(sourced from www.abc.net.au)
Jingyuan Coal to acquire coal assets
Thursday, 22 Dec 2011
It is reported that Gansu Jingyuan Coal Industry And Electricity Power intends to issue 162.59 million shares to controlling shareholder, Jingyuan Coal Group at CNY 16.36 per share in order to purchase CNY 2.66 billion worth of coal assets from the latter.
The assets to be purchased include Baiyin Energy Saving Thermal, Qingmei Engineering Investigation, Jinghong Storage and Transportation, Jingyuan Coal Yilin Resource Development and other related assets.
The assets recorded total revenue of CNY 2.519 billion and net profit of CNY 286 million during the first three quarters of 2011. After the completion of the transaction, Jingyuan Coal Group will have 246 million shares or a 72.37% stake in the listed company.
The acquisitions will increase Jingyuan Coal recoverable coal reserves by 250 million tonnes and raise mine production volume by 7.63 million tons per year.
It was reported that the transaction will solve the problem of horizontal competition between Jingyuan Coal and Jingyuan Coal Group.
(Sourced from Shanghai Securities News)
It is reported that Gansu Jingyuan Coal Industry And Electricity Power intends to issue 162.59 million shares to controlling shareholder, Jingyuan Coal Group at CNY 16.36 per share in order to purchase CNY 2.66 billion worth of coal assets from the latter.
The assets to be purchased include Baiyin Energy Saving Thermal, Qingmei Engineering Investigation, Jinghong Storage and Transportation, Jingyuan Coal Yilin Resource Development and other related assets.
The assets recorded total revenue of CNY 2.519 billion and net profit of CNY 286 million during the first three quarters of 2011. After the completion of the transaction, Jingyuan Coal Group will have 246 million shares or a 72.37% stake in the listed company.
The acquisitions will increase Jingyuan Coal recoverable coal reserves by 250 million tonnes and raise mine production volume by 7.63 million tons per year.
It was reported that the transaction will solve the problem of horizontal competition between Jingyuan Coal and Jingyuan Coal Group.
(Sourced from Shanghai Securities News)
China's Yanzhou inks A$700 mln deal for Gloucester Coal
Thu Dec 22, 2011
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
Friday, December 16, 2011
CIL board approves proposal to acquire stakes in overseas firms
Friday, 16 Dec 2011
The Hindu reported that seeking to venture into Australia, Indonesia and United States to scout for mineral resources, Coal India Limited board has approved the proposal to acquire stakes in unlisted firms overseas for valid offers.
The CIL board gave its approval to the issue in wake of the finance ministry having granted approval last month to CIL to go ahead with a buyout of overseas firms that are unlisted.
The board, while granting approval, said CIL could evaluate the offers if only they are valid.
In the first phase of the program, the company will take up three offers in Australia, Indonesia and the US.
CIL has put together a war chest of INR 6,000 crore for acquisition of mines.
(Sourced from thehindu.com)
The Hindu reported that seeking to venture into Australia, Indonesia and United States to scout for mineral resources, Coal India Limited board has approved the proposal to acquire stakes in unlisted firms overseas for valid offers.
The CIL board gave its approval to the issue in wake of the finance ministry having granted approval last month to CIL to go ahead with a buyout of overseas firms that are unlisted.
The board, while granting approval, said CIL could evaluate the offers if only they are valid.
In the first phase of the program, the company will take up three offers in Australia, Indonesia and the US.
CIL has put together a war chest of INR 6,000 crore for acquisition of mines.
(Sourced from thehindu.com)
Friday, December 2, 2011
3 Indian companies in race for CIL Mozambique Exploration Project
Friday, 02 Dec 2011
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Tuesday, November 22, 2011
SAIL in talks for coal assets in Virginia
Tuesday, 22 Nov 2011
Continuing with efforts for ensuring raw material security and forging alliances with global entities for tapping new markets, Mr CS Verma chairman of Steel Authority of India Limited met a high level delegation from the United States of America headed by Mr Robert F McDonnell governor of the Commonwealth of Virginia, USA, at Ispat Bhavan. The Governor was accompanied by Virginia's Secretary of Commerce & Trade Mr James S Cheng and State Treasurer Ms Manju S Ganeriwala.
Mr Verma held discussions with the governor for facilitating acquisition of coking coal assets and companies in the mineral rich state of Virginia which could become a sustainable source of coking coal for the promoter companies of International Coal Ventures Private Limited.
Mr. McDonnell assured his support in providing ICVL with requisite geological information and in identification of coking coal assets and mines. He also discussed the possibility of facilitating business between ICVL and small and medium mining companies in Virginia by forming joint ventures, besides exploring opportunities for Greenfield locations.
The Governor emphasized upon Virginia's state of art rail and port infrastructure required to maintain and build a sustainable working relation with ICVL. In order to facilitate Indian investment in Virginia, an office has been opened by the state in Mumbai.
In 2009, Forbes magazine named Virginia the best state in the US for business for the fourth year in a row, while CNBC named it the top state for business in 2007, 2009 and 2011. Annually, Virginia produces over 24 million tonnes of coal and exported over USD 293 million worth of goods & services to India in 2010, marking a 55% increase in the last two years. Virginia, which boasts of 31 Fortune 500 companies, has a considerable Indian industrial and corporate presence as well.
Continuing with efforts for ensuring raw material security and forging alliances with global entities for tapping new markets, Mr CS Verma chairman of Steel Authority of India Limited met a high level delegation from the United States of America headed by Mr Robert F McDonnell governor of the Commonwealth of Virginia, USA, at Ispat Bhavan. The Governor was accompanied by Virginia's Secretary of Commerce & Trade Mr James S Cheng and State Treasurer Ms Manju S Ganeriwala.
Mr Verma held discussions with the governor for facilitating acquisition of coking coal assets and companies in the mineral rich state of Virginia which could become a sustainable source of coking coal for the promoter companies of International Coal Ventures Private Limited.
Mr. McDonnell assured his support in providing ICVL with requisite geological information and in identification of coking coal assets and mines. He also discussed the possibility of facilitating business between ICVL and small and medium mining companies in Virginia by forming joint ventures, besides exploring opportunities for Greenfield locations.
The Governor emphasized upon Virginia's state of art rail and port infrastructure required to maintain and build a sustainable working relation with ICVL. In order to facilitate Indian investment in Virginia, an office has been opened by the state in Mumbai.
In 2009, Forbes magazine named Virginia the best state in the US for business for the fourth year in a row, while CNBC named it the top state for business in 2007, 2009 and 2011. Annually, Virginia produces over 24 million tonnes of coal and exported over USD 293 million worth of goods & services to India in 2010, marking a 55% increase in the last two years. Virginia, which boasts of 31 Fortune 500 companies, has a considerable Indian industrial and corporate presence as well.
United Tractors to acquire two more mining sites in Kalimantan
Tuesday, 22 Nov 2011
The Jakarta Post reported that publicly listed heavy equipment distributor PT United Tractors, which also has coal mining interests, said is working to acquire two more mining sites in Kalimantan.
Mr Gidion Hasan director of finance and administration at United Tractors said that "One site is a Greenfield in Central Kalimantan and another site is a Brownfield in East Kalimantan."
He declined to reveal the two sites' sizes, saying the company had a confidentiality agreement. He said that "All I can say is that when the company carries out an acquisition, the site must have at least 30 million tonnes of coal reserves. However, it doesn't mean that each of those two sites to be acquired have 30 million tonnes of coal reserves."
Mr Gidion said that the company expected to finish the acquisition process early in 2012. He said that the company would likely maintain next year's capital expenditure at this year's figure of IDR 5 trillion, despite the acquisition plan.
He added that "We can't include spending on the acquisition plan in the capital expenditure because the plan may be accomplished or it may be unsuccessful."
He said that the company would finance the capital expenditure from internal cash, bank loans and the remaining funds from a rights issuance in June.
United Tractors still has IDR 1.77 trillion out of IDR 6.07 trillion gained in the rights issuance, which was the company's fourth. After paying IDR 45.83 billion for fees and expenses for the rights, United Tractors already used IDR 4.25 trillion by September 2011.
United Tractors, through its subsidiary PT Pamapersada Nusantara and PT Tuah Turangga Agung, currently has six concessions areas with a total of up to 369 million tonnes viable coal reserves in Kalimantan and Sumatra.
Mr Gidion said that United Tractors aimed to increase total reserves to up to 500 million tonnes as asked by its parent company, PT Astra International. The company reported coal sales at IDR 3.21 million tons as of September 2011.
Mining contracting division PT Pamapersada Nusantara reported coal production of 63.3 million tonnes by September 2011 and aimed to reach 84 million tonnes by the end of 2011.
United Tractors reported revenue of IDR 39.75 billion in the first nine months of 2011, increasing from IDR 27.81 billion in the same period last year. The company's net profit stood at IDR 4.35 billion by September 2011, rising 49% from IDR 2.96 billion year on year.
Its construction machinery division contributed about 50% of the total revenue, while the mining contracting division added 40% and coal mining 10%.
(Sourced TheJakartaPost)
The Jakarta Post reported that publicly listed heavy equipment distributor PT United Tractors, which also has coal mining interests, said is working to acquire two more mining sites in Kalimantan.
Mr Gidion Hasan director of finance and administration at United Tractors said that "One site is a Greenfield in Central Kalimantan and another site is a Brownfield in East Kalimantan."
He declined to reveal the two sites' sizes, saying the company had a confidentiality agreement. He said that "All I can say is that when the company carries out an acquisition, the site must have at least 30 million tonnes of coal reserves. However, it doesn't mean that each of those two sites to be acquired have 30 million tonnes of coal reserves."
Mr Gidion said that the company expected to finish the acquisition process early in 2012. He said that the company would likely maintain next year's capital expenditure at this year's figure of IDR 5 trillion, despite the acquisition plan.
He added that "We can't include spending on the acquisition plan in the capital expenditure because the plan may be accomplished or it may be unsuccessful."
He said that the company would finance the capital expenditure from internal cash, bank loans and the remaining funds from a rights issuance in June.
United Tractors still has IDR 1.77 trillion out of IDR 6.07 trillion gained in the rights issuance, which was the company's fourth. After paying IDR 45.83 billion for fees and expenses for the rights, United Tractors already used IDR 4.25 trillion by September 2011.
United Tractors, through its subsidiary PT Pamapersada Nusantara and PT Tuah Turangga Agung, currently has six concessions areas with a total of up to 369 million tonnes viable coal reserves in Kalimantan and Sumatra.
Mr Gidion said that United Tractors aimed to increase total reserves to up to 500 million tonnes as asked by its parent company, PT Astra International. The company reported coal sales at IDR 3.21 million tons as of September 2011.
Mining contracting division PT Pamapersada Nusantara reported coal production of 63.3 million tonnes by September 2011 and aimed to reach 84 million tonnes by the end of 2011.
United Tractors reported revenue of IDR 39.75 billion in the first nine months of 2011, increasing from IDR 27.81 billion in the same period last year. The company's net profit stood at IDR 4.35 billion by September 2011, rising 49% from IDR 2.96 billion year on year.
Its construction machinery division contributed about 50% of the total revenue, while the mining contracting division added 40% and coal mining 10%.
(Sourced TheJakartaPost)
Sunday, November 20, 2011
View Resources plans acquisition in coal sector in Kyrgyzstan
Sunday, 20 Nov 2011
View Resources is set to move into the coal space, with the acquisition of a 90% interest in two prospective coal assets in southern Kyrgyzstan.
The company has entered a binding Heads of Agreement to acquire 100% of the shares in Hong Kong based Oshpur, which holds 90% interests in the Sary-Mogol and Bel-Alma projects.
Subject to shareholder approval, the deal will be funded through staged payments of USD 2.6 million cash and the issue of 100 million shares and 500,000 performance shares in View.
Both projects are located close to the border of China, which is a likely end user of any coal produced, providing good access to a potential market.
In addition to the two projects included in the acquisition, the vendors of the projects will assist View in securing additional coal projects in Kyrgyzstan.
The Bel-Alma project is a potentially large tonnage, high quality thermal coal project, covering an area of 278 hectares with historical samples returning calorific values between 6500 kilocalories and 7150 kilocalories.
(sourced proactiveinvestors)
View Resources is set to move into the coal space, with the acquisition of a 90% interest in two prospective coal assets in southern Kyrgyzstan.
The company has entered a binding Heads of Agreement to acquire 100% of the shares in Hong Kong based Oshpur, which holds 90% interests in the Sary-Mogol and Bel-Alma projects.
Subject to shareholder approval, the deal will be funded through staged payments of USD 2.6 million cash and the issue of 100 million shares and 500,000 performance shares in View.
Both projects are located close to the border of China, which is a likely end user of any coal produced, providing good access to a potential market.
In addition to the two projects included in the acquisition, the vendors of the projects will assist View in securing additional coal projects in Kyrgyzstan.
The Bel-Alma project is a potentially large tonnage, high quality thermal coal project, covering an area of 278 hectares with historical samples returning calorific values between 6500 kilocalories and 7150 kilocalories.
(sourced proactiveinvestors)
Friday, November 18, 2011
Optimum Coal minorities to get takeover offer
Glencore had announced an expression of interest in a controlling stake that valued Optimum at R34 per share, offer to buy remaining shares will be made
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Thursday, November 17, 2011
Peabody Energy on path to full Macarthur Coal acquisition
Thursday, 17 November 2011
St. Louis, Missouri-based Peabody Energy, the world's largest private-sector coal company, announced Wednesday that its subsidiary PEAMCoal Pty Ltd has acquired over 90 percent of all of the shares of Australian metallurgical coal producer Macarthur Coal. By acquiring 90 percent of the shares, PEAMcoal is compulsorily able to purchase the remaining shares.
Other shareholders such as South Korea's POSCO, which owns a 7.25 percent stake, will be forced to sell its shares to Peabody. The purchase price will also increase to A$16.25 (US$16.39) per share, up from A$16.00 (US$16.14) per share--Peabody had previously agreed to increase its offer price per share if it was able to acquire a 90 percent stake.
Tags: Met Coke , Korea S. , USA , Australia , Korea , Macarthur Coal , POSCO , raw mat , East Asia and Pacific , Oceania , Far East , North America , mining , M&A
Sourced:SteelOrbis
St. Louis, Missouri-based Peabody Energy, the world's largest private-sector coal company, announced Wednesday that its subsidiary PEAMCoal Pty Ltd has acquired over 90 percent of all of the shares of Australian metallurgical coal producer Macarthur Coal. By acquiring 90 percent of the shares, PEAMcoal is compulsorily able to purchase the remaining shares.
Other shareholders such as South Korea's POSCO, which owns a 7.25 percent stake, will be forced to sell its shares to Peabody. The purchase price will also increase to A$16.25 (US$16.39) per share, up from A$16.00 (US$16.14) per share--Peabody had previously agreed to increase its offer price per share if it was able to acquire a 90 percent stake.
Tags: Met Coke , Korea S. , USA , Australia , Korea , Macarthur Coal , POSCO , raw mat , East Asia and Pacific , Oceania , Far East , North America , mining , M&A
Sourced:SteelOrbis
Wednesday, November 16, 2011
India Cements has reportedly acquired a coal mine in Indonesia
Net profit of the company rose 105% to Rs 700mn as compared with Rs 340mn a year ago.
Wed, Nov16, 2011 sourced:India Infoline
India Cements has reportedly acquired a coal mine in Indonesia, which is expected to go on stream by January 2012, for $20 million.
According to reports, India Cements is also in the process of setting up a 50 Megawatt power plant near Tirunelveli in Tamil Nadu. Sluggish growth of cement, increase in fuel and power cost, higher interest rate is the concern of the company and the industry as well. While the input cost have increased 7-8%, output cost rose only 2%.
N Srinivasan, vice chairman and managing director, India Cements was quoted as saying “The coal mine acquisition is a strategic decision, it will reduce our exposure to the fluctuating coal price internationally. Despite a 4% fall in demand across south India, the company managed to post good profit. Its capacity utilisation was around 68%, due to the excess capacity in South India, which is currently around 100 million tonnes.”
Net profit of the company rose 105% to Rs 700mn as compared with Rs 340mn a year ago. The company posted around 30% increase in net sales to Rs 10,920mn as against Rs 8,430mn during the same quarter last year, reports added.
Wed, Nov16, 2011 sourced:India Infoline
India Cements has reportedly acquired a coal mine in Indonesia, which is expected to go on stream by January 2012, for $20 million.
According to reports, India Cements is also in the process of setting up a 50 Megawatt power plant near Tirunelveli in Tamil Nadu. Sluggish growth of cement, increase in fuel and power cost, higher interest rate is the concern of the company and the industry as well. While the input cost have increased 7-8%, output cost rose only 2%.
N Srinivasan, vice chairman and managing director, India Cements was quoted as saying “The coal mine acquisition is a strategic decision, it will reduce our exposure to the fluctuating coal price internationally. Despite a 4% fall in demand across south India, the company managed to post good profit. Its capacity utilisation was around 68%, due to the excess capacity in South India, which is currently around 100 million tonnes.”
Net profit of the company rose 105% to Rs 700mn as compared with Rs 340mn a year ago. The company posted around 30% increase in net sales to Rs 10,920mn as against Rs 8,430mn during the same quarter last year, reports added.
Monday, October 31, 2011
Canada's Grande Cache agrees to C$1 bln buyout
Mon Oct 31, 2011
* All-cash deal for Grande Cache worth about C$1 billion
* Winsway, Marubeni to pay C$10 per Grande Cache share
* Grande Cache shares surge 66 pct on the TSX
* Deal is part of M&A wave fueled by Chinese demand
TORONTO, Oct 31 (Reuters) - Canada's Grande Cache Coal has agreed to be acquired by Winsway Coking Coal and Marubeni Corp in a C$1 billion ($1 billion) deal fueled by demand from China's steelmakers.
Hong Kong-listed Winsway -- a supplier of coking coal to Chinese steelmakers -- and Japanese trading house Marubeni will pay C$10 cash for each share of Grande Cache, a 70 percent premium to the company's closing price on Oct. 28.
The offer, announced on Monday, is part of a flurry of deal activity in the global coal industry, including Peabody Energy's $5 billion offer to buy Australia's Macarthur Coal .
Miners are scrambling to capitalize on rising demand from China and Indiaeven as uncertainty surrounds the broad economic outlook. Producers of thermal coal, used in power plants, and coking or metallurgical coal, used to make steel, have both become targets.
Grande Cache, the most actively traded stock on the TSX on Monday, was also the biggest gainer on the day, up 66 percent to C$9.77 in early trading.
The Calgary, Alberta-based coking coal miner said its board unanimously approved the deal and believes that it is in the best interest of shareholders.
Directors and officers of the company have agreed to tender their shares in favor of the deal, the company said in a statement.
The company said it won't initiate talks with any other parties about a possible business combination.
Peabody is in the process of buying Macarthur on its own after ArcelorMittal , the world's largest steelmaker, pulled out of a joint $5 billion bid.
Earlier this month, New Hope , an Australian coal miner, put itself up for auction after receiving several approaches.
(sourced Reuters)
* All-cash deal for Grande Cache worth about C$1 billion
* Winsway, Marubeni to pay C$10 per Grande Cache share
* Grande Cache shares surge 66 pct on the TSX
* Deal is part of M&A wave fueled by Chinese demand
TORONTO, Oct 31 (Reuters) - Canada's Grande Cache Coal has agreed to be acquired by Winsway Coking Coal and Marubeni Corp in a C$1 billion ($1 billion) deal fueled by demand from China's steelmakers.
Hong Kong-listed Winsway -- a supplier of coking coal to Chinese steelmakers -- and Japanese trading house Marubeni will pay C$10 cash for each share of Grande Cache, a 70 percent premium to the company's closing price on Oct. 28.
The offer, announced on Monday, is part of a flurry of deal activity in the global coal industry, including Peabody Energy's $5 billion offer to buy Australia's Macarthur Coal .
Miners are scrambling to capitalize on rising demand from China and Indiaeven as uncertainty surrounds the broad economic outlook. Producers of thermal coal, used in power plants, and coking or metallurgical coal, used to make steel, have both become targets.
Grande Cache, the most actively traded stock on the TSX on Monday, was also the biggest gainer on the day, up 66 percent to C$9.77 in early trading.
The Calgary, Alberta-based coking coal miner said its board unanimously approved the deal and believes that it is in the best interest of shareholders.
Directors and officers of the company have agreed to tender their shares in favor of the deal, the company said in a statement.
The company said it won't initiate talks with any other parties about a possible business combination.
Peabody is in the process of buying Macarthur on its own after ArcelorMittal , the world's largest steelmaker, pulled out of a joint $5 billion bid.
Earlier this month, New Hope , an Australian coal miner, put itself up for auction after receiving several approaches.
(sourced Reuters)
Victory West Metals acquiring Indonesian coal concessions
Monday, 31 Oct 2011
Victory West Metals has provided an update on its agreement with South East Asia Energy Resources Pte Ltd to acquire nine coking and thermal coal concessions in Indonesia.
The company announced on September 9 that it had signed a Heads of Agreement to acquire 100% of SEAE which is a special purpose company registered in Singapore that has the rights to an 85% interest in the BEK Coal Project in East Kalimantan.
Victory West has reported that SEAE has reached an understanding with United Mining Group to supply Indonesian thermal coal to Vietnam National Coal Mineral Industries Group once those parties have negotiated and entered into binding agreements.
State owned Vinacomin is responsible for sourcing energy supply for several state owned coal fired power plants in Vietnam. Vinacomin operates the Tan Rai Bauxite Project and has entered into a non binding Memorandum of Understanding with United Mining Group. SEAE is part of the United Mining Group.
The non binding MOU is fully transferrable to SEAE Resources and provides all such coal supply and off take rights to SEAE Resources, starting in the second quarter of 2012 and onwards. An initial supply order of 50,000 tons per month has been agreed with the supply demand expected to reach 250,000 tons per month once the Tan Rai project is operating at full capacity.
The initial contract term is three years and the price is the full market indexed price for export thermal coal.
SEAE anticipates entering into binding agreements with Vinacomin upon completion of mining planning and production scheduling to meet SEAE Resources production allocated capabilities.
The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals.
(sourced from ProActiveInvestors)
Victory West Metals has provided an update on its agreement with South East Asia Energy Resources Pte Ltd to acquire nine coking and thermal coal concessions in Indonesia.
The company announced on September 9 that it had signed a Heads of Agreement to acquire 100% of SEAE which is a special purpose company registered in Singapore that has the rights to an 85% interest in the BEK Coal Project in East Kalimantan.
Victory West has reported that SEAE has reached an understanding with United Mining Group to supply Indonesian thermal coal to Vietnam National Coal Mineral Industries Group once those parties have negotiated and entered into binding agreements.
State owned Vinacomin is responsible for sourcing energy supply for several state owned coal fired power plants in Vietnam. Vinacomin operates the Tan Rai Bauxite Project and has entered into a non binding Memorandum of Understanding with United Mining Group. SEAE is part of the United Mining Group.
The non binding MOU is fully transferrable to SEAE Resources and provides all such coal supply and off take rights to SEAE Resources, starting in the second quarter of 2012 and onwards. An initial supply order of 50,000 tons per month has been agreed with the supply demand expected to reach 250,000 tons per month once the Tan Rai project is operating at full capacity.
The initial contract term is three years and the price is the full market indexed price for export thermal coal.
SEAE anticipates entering into binding agreements with Vinacomin upon completion of mining planning and production scheduling to meet SEAE Resources production allocated capabilities.
The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals.
(sourced from ProActiveInvestors)
Friday, October 21, 2011
Gunvor buys 33pct of US coal mine for USD 400 million
Friday, 21 Oct 2011
Interfax reported that Gunvor the commodities trader founded by Gennady Timchenko and Torbjorn Tornqvist has acquired a coal asset in the United States.
Pinesdale LLC a unit of Gunvor Group has paid USD 400 million for a one-third interest in the Signal Peak coal mine in Montana, one of the sellers. FirstEnergy will receive USD 260 million of the selling price and the remainder will go to private coal firm Boich.
FirstEnergy and Boich bought Signal Peak in 2008. At the time, FirstEnergy paid USD 125 million for a 45% stake in the project. The deal with Gunvor calls for creating a new corporate entity, Global Mining Holding Company in which the three investors will each own a one-third interest.
Mr Wayne Boich Jr president and chief executive of Boich Companies said "One of the key advantages that Gunvor Group brings to this venture is the ability to utilize their commodity trading relationships in such markets as Japan, China, Korea and Chile to sell more coal."
Mr Timothy Legge Gunvor SA chairman said this is Gunvor first investment in a coal mine in the United States. The trader can ship large amounts of coal through the deepwater port of Vancouver.
Under the deal, FirstEnergy Generation a subsidiary of FirstEnergy Corp has revised its original coal purchase agreement with Signal Peak to reduce annual purchases from 6.8 million to 1.8 million tonnes. Most of the coal from the mine will now be purchased by Gunvor.
Signal Peak now mines more than 8 million tonnes of thermal coal per year, but this figure is expected to grow to 13.5 million tonnes by 2015.
(Sourced from Interfax)
Interfax reported that Gunvor the commodities trader founded by Gennady Timchenko and Torbjorn Tornqvist has acquired a coal asset in the United States.
Pinesdale LLC a unit of Gunvor Group has paid USD 400 million for a one-third interest in the Signal Peak coal mine in Montana, one of the sellers. FirstEnergy will receive USD 260 million of the selling price and the remainder will go to private coal firm Boich.
FirstEnergy and Boich bought Signal Peak in 2008. At the time, FirstEnergy paid USD 125 million for a 45% stake in the project. The deal with Gunvor calls for creating a new corporate entity, Global Mining Holding Company in which the three investors will each own a one-third interest.
Mr Wayne Boich Jr president and chief executive of Boich Companies said "One of the key advantages that Gunvor Group brings to this venture is the ability to utilize their commodity trading relationships in such markets as Japan, China, Korea and Chile to sell more coal."
Mr Timothy Legge Gunvor SA chairman said this is Gunvor first investment in a coal mine in the United States. The trader can ship large amounts of coal through the deepwater port of Vancouver.
Under the deal, FirstEnergy Generation a subsidiary of FirstEnergy Corp has revised its original coal purchase agreement with Signal Peak to reduce annual purchases from 6.8 million to 1.8 million tonnes. Most of the coal from the mine will now be purchased by Gunvor.
Signal Peak now mines more than 8 million tonnes of thermal coal per year, but this figure is expected to grow to 13.5 million tonnes by 2015.
(Sourced from Interfax)
Tuesday, October 11, 2011
RENUKA COALINDO BUYS JAMBI COAL
Tuesday, 11 October 11
PT Renuka Coalindo Tbk, formerly PT Allbond Makmur Usaha Tbk plans to acquire PT Jambi Prima Coal holder of mining concession in Pauh, Sarolangun regency, Jambi province, according to media reports in Indonesia. Sharad Ugrankar, Director of Renuka Coalindo, in an official announcement filed to Indonesia Stock Exchange lastweek said the company has entered into a share sale and purchase agreement with PT Surya Commodities, owner of Jambi Prima Coal. PT Renuka Coalindo Tbk is a subsidiary of Renuka Energy Resource Holdings (FZE).
Insider stories reported that, Jambi Prima is a company that is holding a coal business license of concession in Pauh, Sarolangun, Jambi, Sumatra. However, the announcement hasn't declared yet about the acquisition price.
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
PT Renuka Coalindo Tbk, formerly PT Allbond Makmur Usaha Tbk plans to acquire PT Jambi Prima Coal holder of mining concession in Pauh, Sarolangun regency, Jambi province, according to media reports in Indonesia. Sharad Ugrankar, Director of Renuka Coalindo, in an official announcement filed to Indonesia Stock Exchange lastweek said the company has entered into a share sale and purchase agreement with PT Surya Commodities, owner of Jambi Prima Coal. PT Renuka Coalindo Tbk is a subsidiary of Renuka Energy Resource Holdings (FZE).
Insider stories reported that, Jambi Prima is a company that is holding a coal business license of concession in Pauh, Sarolangun, Jambi, Sumatra. However, the announcement hasn't declared yet about the acquisition price.
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
Friday, September 30, 2011
Coal miner CCPF continues to acquire coal mines in Colombia
Friday, 30 Sep 2011
California based coal mining company Colombia Clean Power & Fuels, Inc will take over operation of a working coal mine at Ruku in Colombia on first of October and expects to put a second larger mine into operation within the next quarter or two to be known as Otanche.
The company newly appointed CEO Mr Ron Stovash said that Colombia offers a great opportunity for the metallurgical market which is robust and will continue to be. Colombia has an estimated 2 billion tonnes of met coal reserves and the country's total annual production is currently only about 3 million tonnes.
(sourced from Steel Orbis)
California based coal mining company Colombia Clean Power & Fuels, Inc will take over operation of a working coal mine at Ruku in Colombia on first of October and expects to put a second larger mine into operation within the next quarter or two to be known as Otanche.
The company newly appointed CEO Mr Ron Stovash said that Colombia offers a great opportunity for the metallurgical market which is robust and will continue to be. Colombia has an estimated 2 billion tonnes of met coal reserves and the country's total annual production is currently only about 3 million tonnes.
(sourced from Steel Orbis)
Monday, August 29, 2011
Convergent Minerals to acquire all shares in Blackwood Coal
Monday, 29 Aug 2011
Convergent Minerals is to acquire all of the shares in Blackwood Coal Pty Ltd which holds a portfolio of coal exploration tenements in Queensland.
The Blackwood portfolio of projects includes a pipeline of coal exploration projects and prospects including an advanced thermal coal exploration project called West Bowen Coal Project located 20 kilometers west of Blair Athol in the Bowen Basin.
The lead project has a 27.3 million tonnes JORC Inferred Resource with an additional 15 to 30 million tonnes exploration target. There are drill ready exploration targets in the Bowen, Surat and Clarence Moreton Basins with previous coal intercepts. Blackwood Coal is planning an intensive drill campaign to increase the JORC resource base in calendar year 2011.
Blackwood Coal currently has a portfolio of 7 granted EPCs and 25 applications. The exploration permits range from advanced exploration with drill ready targets to Greenfield lateral opportunities. Drilling at the East Wandoan Project has intersected up to 11.7 meters in cumulative thickness of coal at depths less than 100 meters.
As consideration, convergent will seek shareholder approval to acquire these assets by a capital raising of up to USD 20,000,000, through the issue of shares at a price subject to market conditions, but not less than USD 0.20 per offer share. The transaction is conditional on Convergent shareholder approval and due diligence of all parties. The transaction requires Convergent to comply with the requirements of Chapters 1 and 2 of the Listing Rules.
The board of the company will replaced by the current board members of Blackwood. Convergent will be renamed Convergent Coal Limited.
A consolidation on a 2 for one basis is proposed. Convergent will sell the Bounty Project to AFL Resources Limited.
(sourced proactiveinvestors)
Convergent Minerals is to acquire all of the shares in Blackwood Coal Pty Ltd which holds a portfolio of coal exploration tenements in Queensland.
The Blackwood portfolio of projects includes a pipeline of coal exploration projects and prospects including an advanced thermal coal exploration project called West Bowen Coal Project located 20 kilometers west of Blair Athol in the Bowen Basin.
The lead project has a 27.3 million tonnes JORC Inferred Resource with an additional 15 to 30 million tonnes exploration target. There are drill ready exploration targets in the Bowen, Surat and Clarence Moreton Basins with previous coal intercepts. Blackwood Coal is planning an intensive drill campaign to increase the JORC resource base in calendar year 2011.
Blackwood Coal currently has a portfolio of 7 granted EPCs and 25 applications. The exploration permits range from advanced exploration with drill ready targets to Greenfield lateral opportunities. Drilling at the East Wandoan Project has intersected up to 11.7 meters in cumulative thickness of coal at depths less than 100 meters.
As consideration, convergent will seek shareholder approval to acquire these assets by a capital raising of up to USD 20,000,000, through the issue of shares at a price subject to market conditions, but not less than USD 0.20 per offer share. The transaction is conditional on Convergent shareholder approval and due diligence of all parties. The transaction requires Convergent to comply with the requirements of Chapters 1 and 2 of the Listing Rules.
The board of the company will replaced by the current board members of Blackwood. Convergent will be renamed Convergent Coal Limited.
A consolidation on a 2 for one basis is proposed. Convergent will sell the Bounty Project to AFL Resources Limited.
(sourced proactiveinvestors)
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