Metallica sells coal assets
Posted: 30 July 2007
Metallica Minerals Limited reported that the sale agreement with Cockatoo Coal Limited has been completed, whereby Cockatoo has purchased Metallica’s two coal subsidiary companies which hold it’s south-east Queensland coal assets for a total of approximately $15 million in cash and shares.
The issue of the Option and the terms were announced to the ASX on 29 June 2007.
Metallica has today received $4.75 million in cash (in addition to a $250,000 option fee already received) plus 25 million shares in the ASX-listed Cockatoo Coal (last trading around 47 cents per share, about 27 cents higher than when the option agreement was announced).
"Metallica’s cash position is now in excess of $10 million," said Mr Andrew Gillies, Metallica's Managing Director.
"We are very happy with our share holding investment in Cockatoo Coal, as we have excellent exposure to Queensland coal project exploration success and developments by a well managed and cashed up coal focused company."
As previously advised, in the event of mining commencing on any of the coal projects, Metallica will receive further shares in Cockatoo Coal, and if mining commences on the Taabinga coal deposit and EPC 882 (covering major portion of the Tarong Coal Basin) near Kingaroy, Metallica will also receive a 40 cents per tonne royalty on any future coal production.
Posted by Richard Price, Editor, EnergyME.com
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