09/07/2008 - 22:00

In Brief: Wavenet joins coal rush

09/07/2008 - 22:00

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In Brief: Wavenet joins coal rush

FORMER technology company, Wavenet International Ltd, has joined the rush by local investors seeking to exploit booming coal prices, agreeing to buy a stake in four coal tenements in Queensland. The company has entered into an agreement to acquire a 50 per cent interest in the projects, which consist of one granted exploration permit and four applications. The most advanced tenement is the Monto project, located south of Macarthur Coal Ltd’s Monto thermal coal project, a joint venture with Hong Kong-based commodity trading house Noble Group. Wavenet will equally own and jointly explore the tenements with Terence Byrt and his company, Ansett Resources and Industries Pty Ltd. Wavenet will pay a $3 million purchase consideration fee and chip in $1 million to exploration costs. The expenses will be funded from Wavenet’s existing cash reserves, which, along with liquid assets, is currently at $4 million. The purchase is subject to shareholder approval.

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