WA based company Blackham Resources Ltd has finished 33 per cent up on news it had exercised an option to purchase Zutshan Energy Pty Ltd, owner of the Zanthus lignite deposit in Western Australia's Eucla Basin for up to $700,000 cash and scrip.
Blackham has completed all due diligence related to this transaction, including a review of Project tenements and related data and records.
Having exercised the Option Agreement, Blackham now has seven days to complete the acquisition of all issued capital in Zutshan. The consideration for this transaction is:
(a) $100,000 in cash; and
(b) $400,000 worth of fully paid ordinary shares in Blackham on exercise
of option.
A further $200,000 worth of fully paid ordinary shares in Blackham will be paid once a
decision to mine is made.
The total inferred Lignite Resource at the Zanthus project of 164 million tonnes has an average thickness of 10 to 13 metres and is 15 to 20 metres deep in the south west and up to 50 metres deep in the north east.
Reports by petroleum consultants in 2005 and 2006 highlighted the potential of the Zanthus Seam as a feedstock for oil production. A limited amount of analysis was conducted and sample results ranged from 38 to 133 litres per tonne on a dry basis.
Due the limited sample population and scatter a much lager sample population will be needed before oil content within the Zanthus seam can be evaluated with confidence.
