Coalworks approves $19.28m sale From: AAP January 24, 2011 12:57PM ? SHAREHOLDERS in Coalworks Ltd have approved the sale of 19.9 per cent of the company's issued capital to Boardwalk Resources Pty Ltd for $19.28 million.
Coalworks shareholders also approved an addition $10.12 million capital raising, through the sale of 15.57 million shares, at $0.65 each, in a private placement.
Shareholders passed a third resolution, to allocate six million options to Voope Pty Ltd, at an extraordinary general meeting in Sydney today.
Boardwalk purchased 29.66 million shares in Coalworks, at $0.65 each, as part of a joint venture agreement where it will spend up to $25 million to develop the Ferndale coking and thermal coal project.
Coalworks owns a 90 per cent interest in the Ferndale Coal project in the Hunter Valley region of New South Wales.
Coalworks announced in December it had done a deal with Boardwalk, a company associated with NSW coal mining magnate Nathan Tinkler, to provide $10 million to achieve a JORC (Joint Ore Reserves Committee) measured resource of 50 million tonnes of coal.
Start of sidebar. Skip to end of sidebar. Related CoverageKangaroo strikes Indonesian coal deal The Australian, 29 Dec 2010 White Energy buys NSW coal assets The Daily Telegraph, 23 Dec 2010 Santos offer swamped after Kogas deal The Australian, 20 Dec 2010 Hochtief's Qatar move to stymie ACS The Australian, 6 Dec 2010 Bow Energy upbeat on gas sales The Australian, 5 Dec 2010End of sidebar. Return to start of sidebar. "The directors of (Coalworks) believe that having Boardwalk and Mr Tinkler as a substantial shareholder of the company is great benefit and will strengthen the company's prospects,'' Coalworks said in a statement today.
The initial $10 million spend will earn Boardwalk 25 per cent of the Ferndale project.
Boardwalk is expected to spend a further $15 million to complete a bankable feasibility study for an open cut project and preliminary feasibility study for an underground project to earn a further 25 per cent of the Ferndale project.
At 1240 AEDT, shares in Coalworks were down half a cent at 93.5 cents.
