10/09/2008 - 14:46

Bathurst moves to control US firm

10/09/2008 - 14:46

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West Perth-based Bathurst Resources Ltd will move to acquire the remaining interest in a United States coal miner following shareholder approval.

West Perth-based Bathurst Resources Ltd will move to acquire the remaining interest in a United States coal miner following shareholder approval.

Bathurst has today exercised the three remaining options to move to full control of C&R Holding of East Kentucky, less than two months after after it acquired an initial 25 per cent interest.

C&R owns two operating coal mines and has plans to bring two other properties into production.

"By moving immediately to 100% Bathurst will be able to proceed with
production expansions and enhancements with more certainty and without
delay," Bathurst said in a statement.

Settlement of the acquisition is expected by the end of this week following an issue of 32 million shares and a payment of $US1.2 million ($A1.5 million) to the vendors of C&R.

The company has also raised over $A1 million through a share placement with over 3.1 million shares issued at 32 cents each.

Shares in the Bathurst, which were previously in a trading halt, have climbed 3c to 45c at 13:16 AEST.

 

Below is the full announcement:

Bathurst Resources Limited ("Bathurst") is pleased to announce that its board has resolved to move immediately to 100% interest in C&R Holding of East Kentucky ("C&R"), following approval by shareholders at yesterday's
EGM.

Bathurst signed an agreement to acquire up to 100% of C&R via an initial 25% interest and three options to acquire a 25% interest each, as announced to ASX on 16 July 2008. Bathurst has now exercised the three
remaining options, resulting in 100% holding in C&R.

C&R has two existing operating coal mines located in east Kentucky USA, and two other properties which it plans to bring in to production in the coming year. Current production is predominantly from the Tarkiln project
in Morgan County Kentucky where monthly production is approximately 30,000 tonnes thermal coal.

By moving immediately to 100% Bathurst will be able to proceed withproduction expansions and enhancements with more certainty and without delay.

Acquisition completed

Bathurst has completed the acquisition effective today with all remaining conditions satisfactorily met. Settlement of the acquisition will occur on 12 September 2008 via the issue of 32 million shares and payment of US$1.2 million to the vendors of C&R. In addition one million shares and one million options will be issued in relation to facilitation of the transaction.

 

A separate announcement by Bathurst regarding the share placement:

Bathurst Resources Limited ("Bathurst") is pleased to announce the placement of 3.15 million shares at 32 cents each to sophisticated investors to raise $1,008,000 before costs of the issue. Shares will be issued under the
company's 15% share issue capacity.

The funds will enable the company to efficiently manage and improve the coal production activities following completion of the acquisition of C&R Holding of Eastern Kentucky in the next week.

 

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