NATHAN Tinkler's Boardwalk Resources (BWK) has signed a joint venture agreement with Coalworks' Ferndale project through Coalworks' 90 per cent owned subsidiary Loyal Coal.
The Ferndale coking/thermal coal project is located southwest of Muswellbrook in the Hunter Valley of NSW, just 125km up the track from the port of Newcastle.
Broker BBY noted last night that Boardwalk plans to inject $25m into Ferndale to earn 50 per cent of the project. Boardwalk will also invest $15.4m into Coalworks (subject to shareholder approval) to get a 19.9 per cent equity position in the company. BBY raised a further $10m for Coalworks from a range of domestic and offshore institutions. Coalworks' (CWK) shares, which were below 50c before mid-November, were suspended on Friday at 70.5c.
CWK Price at posting:
67.8¢ Sentiment: Hold Disclosure: Held
