03/07/2008 - 15:59

Wavenet joins coal rush

03/07/2008 - 15:59

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Former technology company Wavenet International Ltd has joined the rush by local investors seeking to exploit booming coal prices, agreeing to purchase a stake in four coal tenements in Queensland.

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 purchase a stake in four coal tenements in Queensland.

 

The full announcement is pasted below:

 

Wavenet International Limited (ASX: WAL) has entered in an agreement to acquire a 50% interest in four coal projects with advanced exploration already conducted on them, located in Queensland. The projects comprise one granted exploration permit for coal (EPC) and four applications for EPC tenements, covering an area of 590 square kilometers (sq km).

Summary:
- Wavenet acquires a 50% interest in four Queensland coal projects;

- The most advanced project is the Monto Project located immediately south of Macarthur Coal Limited's Monto thermal coal project which Macarthur Coal owns in joint venture with Hong Kong based commodity trading house Noble Group. Noble Group recently purchased an effective 10% interest in the Monto thermal coal project for $48.5 million;

- Previous exploration work has confirmed coal prospectivity of the tenements;

- Purchase consideration of $3 million plus a $1 million contribution to joint venture expenditure;

- Subject to Wavenet shareholder approval; and

- On completion of the acquisition, Wavenet will continue to be in a strong financial position with approximately $4 million of cash and liquid assets.

The project tenements are being acquired from Mr Terence Byrt and his associated company, Ansett Resources and Industries Pty Ltd. Under the terms of the Agreement, the Tenements will be held in a company owned equally by each of Wavenet and Mr Byrt. This company will jointly explore and develop the tenements.

The purchase consideration and joint venture commitments under the Agreement will be funded from Wavenet's existing cash reserves.

The Agreement is subject to the approval of shareholders of Wavenet at a meeting to be convened shortly. A notice of meeting and information memorandum will be prepared as part of a proposed change of activities of Wavenet.

 

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