West Perth-based Altera Resources Ltd has walked away from a proposed $13 million acquisition of an underground coal gasification company.
In a brief announcement today, Altera said that in light of the adverse change in financial markets, it had attempted to renegotiate the terms that was to be payable to vendors of Clean Global Energy Pty Ltd.
"Unfortunately the Board has not been able to reach an acceptable position with the CGE vendors," Altera said.
"As such the Board does not intend to pursue the CGE transaction further."
In August, Altera announced an all scrip deal to acquire CGE which has access to intellectual property for underground coal gasification.
Under the deal, Altera would have issued 90 million fully paid ordinary shares to CGE vendors and a further 45 million shares once CGE's coal tenement applications in Queensland were granted.
The deadline for the deal was set at October 30 this year.
Shares in Altera today came out of a trading halt and were unchanged at 10 cents.
