UPDATE 1.25pm: Shares in Commodities Group rose after the company announced an access and option agreement over a Northern Territory cattle station as part of its plan to create Australia's biggest prawn farm operation.
The three-year agreement with the 180,000ha Legune Station give Commodities Group the right to begin planning for a prawn farming venture on the property as well as the option to purchase the station outright.
"The signing of the access and option agreement has put Seafarms in a position to immediately begin the process of obtaining regulatory and environmental approvals, completing a bankable feasibility study and arranging funding for Project Sea Dragon," the company said in a statement.
Commodities Group has put a cost of $1.45 billion on Project Sea Dragon, based on 10,000ha of land-based black tiger prawn production facilities for domestic and international wholesale markets.
The Ian Trahar controlled and led company envisages a staged rollout of its plan, which would eventually employ 1600 workers across operation in Darwin, Legune Station, Kununurra, Wyndham and Exmouth.
Commodities Group said the agreement would put it in a position to engage with potential financial partners, including those who had previously expressed interest in participating in the project.
"This, together with a successful Christmas 2014 trading period for its north Queensland prawn operations, sets the company and Seafarms (its subsidiary) up for a strong and productive 2015 year," Commodities Group said in a statement.
The company bought Coral Sea Farms in Queensland in September last year for $4.2 million as part of a trial for its wider Project Sea Dragon plan.
Shares in Commodities Group were up 0.4 cents, or 4.94 per cent, to 8.5 cents at the close.
COZ Price at posting:
8.5¢ Sentiment: Hold Disclosure: Held
