13/11/2009 - 09:18

Bathurst axes US acquisition

13/11/2009 - 09:18

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West Perth-based Bathurst Resources will reverse its acquisition of a United States coal miner after a dispute arose over the original agreements.

West Perth-based Bathurst Resources will reverse its acquisition of a United States coal miner after a dispute arose over the original agreements.

Bathurst today announced that it has reached a settlement agreement for the reverse acquisition of C&R Holding of Eastern Kentucky, which operates two coal mines in the US, from the original vendors.

The agreement comes more than a year after Bathurst shareholders approved the acquisition.

Bathurst said the parties have agreed to settle the dispute without admission of liability.

The company did not detail the dispute, only saying that it covered substantial and fundamental matters relating to the original purchase agreements.

Under the settlement agreement, the original vendors will transfer the 58.9 million Bathurst shares back to Bathhurst, which intends to cancel them.

C&R will also pay Bathurst $US5 million by way of a monthly 'royalty' equivalent to 2 per cent of the net sales price of coal sold, and Bathurst will retain the Feds Creek project in Pike County.

Shares in Bathurst last traded at 8.3 cents at the end of September before the company suspended trading.

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