Newland scraps acquisition plans

The continued market volatility has claimed another potential acquisition with Newland Resources Ltd scrapping plans to acquire stakes in two companies that hold iron ore and petroleum projects.

Perth-based Newland said late yesterday that after consideration of the commitment to the projects and the current market turmoil, it has decided not to proceed with the 50 per cent purchase of shares in Zeus Petroleum Ltd and a 26 per cent interest in South American Ferro Metals Ltd.

The acquisition was announced in June, with the deal valued at about $44 million, and was subject to due diligence.

"The Board wish to make clear that it considers both these assets to be very worthy assets with plenty of future potential, but feel they carry with them commitments more than the Board feel comfortable with at this time and in the current market climate," Newland said.

Zeus holds petroleum exploration interests in the British North Sea while South American Ferro holds an iron ore project in Brazil.