05/02/2009 - 10:38

Australasian, RDI merger delayed

05/02/2009 - 10:38

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The proposed merger between Australasian Resources and billionaire Clive Palmer's Resource Development International is anticipated to take place next year as the latter re-schedules its listing plans.

The proposed merger between Australasian Resources and billionaire Clive Palmer's Resource Development International is anticipated to take place next year as the latter re-schedules its listing plans.

In an update to the market, Australasian said it had sought clarification from RDI over the merger implementation agreement which is due to expire next month.

In August last year, both companies signed the agreement which will see Australasian merge with RDI on condition that RDI was floated on the Hong Kong Stock Exchange by the end of 2008.

However due to market volatility, RDI confirmed in November that it will push back its listing date.

Today Australasian said Mr Palmer had advised that the Hong Kong listing is currently planned to take place in the last half of this year.

"Australasian and RDI are in discussions to extend the current merger agreement beyond 31 March 2009," Australasian said.

Mr Palmer already holds a 66.4 per cent interest in Australasian, which is currently developing the $2.7 billion Balmoral South iron ore project with partner Shougang.

Australasian acquired project from Mr Palmer's other private company, Mineralogy.

Shares in Australasian were placed in a trading halt earlier today, and last traded at 36 cents.

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