Altona Energy forges early-stage agreement to develop Australian coal mine
Source - SMW
Altona Energy said it had signed an early-stage agreement with joint venture partners Wintask Group Sino-Aus Energy Group to assess the potential for a conventional coal mine in the Westfield tenement in South Australia.
Wintask and Sino-Aus confirmed that the level of funding committed in the 2014 JV could be made available to develop the project, totaling A$3.3m and A$29.7m for each partner, respectively.
The agreement was a non-binding 'memorandum of understanding'.
'This level of funding would represent more than twice the company’s current market capitalisation,' chief executive Nick Lyth said.
'The economics of conventional coal mining in Australia are at their strongest level for several years with a number of thermal coal mine companies, such as Whitehaven Coal, showing significantly higher share prices and exceptional profits.'
'I look forward to reporting progress on our exploration to shareholders, along with further updates on our tenement licence renewals and third-party agreements.'
At 2:10pm: (LON:ANR) Altona Energy PLC share price was -0.03p at 0.45p