27/05/2008 - 13:08

Comdek plans another coal purchase

27/05/2008 - 13:08

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Subiaco-based Comdek Ltd has announced plans to acquire two coal projects in Tasmania for $15 million in scrip, three months after buying another two coal projects in the same State.

Comdek plans another coal purchase

Subiaco-based Comdek Ltd has announced plans to acquire two coal projects in Tasmania for $15 million in scrip, three months after buying another two coal projects in the same State.

Comdek has signing an option to acquire 100 per cent of the issued capital of Tiger Coal Pty Ltd (Tiger Coal), a company that has applied for two coal projects in Tasmania.

The Jericho East and Jericho West coal projects are located in central Tasmania.

They are black (bituminous) thermal coal projects, located immediately adjacent to an underutilised freight railway line in the Midland Valley of Central Tasmania.

The railway line is connected to available deepwater load out facilities located 40 km to the south at Hobart and 120 km to the north of the project which are capable of loading 40-60,000 tonne Panamax ships.

Comdek said the projects have inferred historical tonnes of coal of 60 to 80 million tonnes of black (bituminous)
thermal coal.

Comdek believes that there is potential for further significant coal discoveries and has an initial exploration target of 240 to 300 million tonnes of thermal coal.

Combined with the tenements in the Woodbury and Latrobe areas, which it agreed to acquire in February 2008, the historical tonnes of coal total 72 to 102 million tonnes with an exploration target of 340 to 460 million tonnes of black (bituminous) thermal coal.

The deal involves an option to acquire 100% of the issued capital of Tiger Coal, subject to certain conditions being satisfied, including exercise of the option within 90 days of entering into the agreement.

Upon written notice of exercise of the option Comdek will enter into a share sale agreement to pay consideration of 75 milion ordinary shares in Comdek based on a valuation of 20 cents per Comdek share.

The shares are to be issued in two stages.

Stage one requires the issue of 60 million fully paid ordinary Comdek shares to the shareholders of Tiger Coal subject to the granting of Jericho East and Jericho West tenements in the name of Tiger Coal and Comdek concluding to its absolute satisfaction its due diligence enquiries within 30 days of the exercise of the option to acquire 100% of the issued capital of Tiger Coal.

Stage two requires the issue of an additional 15 million fully paid ordinary Comdek shares to the shareholders of Tiger Coal, conditional upon the completion of stage one and the delineation, at any time within 2 years after the date of this agreement with Tiger Coal, of a JORC In Situ Inferred coal resource of not less than 79 million tonnes of black (bituminous) coal either within one of the Projects or across all of the Projects combined.

Following the acquisition, Comdek will commence exploration on the Projects with a view to determining the extent of coal deposit and whether this may lead to a commercial coal mining operation.

Initial phase exploration expenditure will focus on upgrading and extending the existing historical tonnes of coal and completing a scoping study into the potential for development of the coal deposit.

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