The turmoil gripping global markets has put a question mark over RMA Energy Ltd's $100 million joint venture deal with an Asian consortium over the development of two Queensland assets.
The turmoil gripping global markets has put a question mark over RMA Energy Ltd's $100 million joint venture deal with an Asian consortium over the development of two Queensland assets.
In April this year, Perth-based RMA announced it had entered into a non-binding agreement with Singapore-based Bounty Resources International Ltd and China Rail Engineering Corporation.
Finalisation of the joint venture deal over RMA's Macaulay Creek and Coane Range projects was anticipated within four weeks of the announcement, however that was delayed due to changes requested by the Chinese company.
RMA said today that subsequent to CREC's late entry into the JV arrangement, world commodity markets have changed significantly, which has put the deal under question.
RMA said that since its announcement in April till now, it has continued negotiations in good faith with Bounty and CREC.
"However there is no guarantee that any agreement will be reached, particularly given the current financial market uncertainties," RMA said.
"It is anticipated that RMA will be in a position to make a more definitive announcement within the next few weeks."
Shares in RMA were steady at 17 cents at 13:51 AEDT.
Below is the full announcement:
On March 13 2008 RMA Energy Limited ("RMA" or "the Company") announced that it had signed a Letter of Intent ("LOI") in respect to the joint venture development of its Macaulay Creek and Coane Range projects in Northern Queensland.
On 18 April it was further announced that CREC was the Chinese consortium behind the joint venture arrangements. RMA initially anticipated the execution of definitive agreements within 4 weeks of the initial ASX announcement.
This execution was delayed by the entry of CREC into the consortium, with certain changes required by them. Subsequent to their entry in late April, world commodity markets weakened significantly, with that position recently exacerbated by major weaknesses emerging in the global economy, as noted by recent share market falls.
Throughout this period we have continued negotiations in good faith with our potential JV partners, Bounty and CREC, and continue to work towards a satisfactory resolution for all.
However there is no guarantee that any agreement will be reached, particularly given the current financial market uncertainties. It is anticipated that RMA will be in a position to make a more definitive announcement within the next few weeks.
