6 September
2016
Altona Energy
plc
(“Altona” or “the Company”)
Arckaringa Joint
Venture Update
Altona (AIM: ANR) is pleased to announce that Altona, Sino-Aus
Energy Group Limited (“Sino-Aus”) and Wintask Group Limited
(“Wintask”) (together the “JV Partners”) have entered into a Deed
of Variation with Arckaringa Coal Chemical Joint Venture Company Co
Pty Ltd (“JV Company”) modifying the terms of the Current JV
Agreement that was originally announced on 14 November 2014 with subsequent changes being
announced on 5 November 2015.
Further to the announcement made by the Company on 28 July 2016 the Deed of Variation gives effect
to the changes now agreed between the JV Partners: the main
amendments are detailed below.
Sino-Aus Second Tranche Subscription
for Altona Shares
As announced on 28 July 2016 the
JV Partners agreed that the second tranche subscription for Altona
shares by Sino-Aus be re-negotiated given the requirement for
the JV Company to obtain a Petroleum Exploration Licence (“PEL”)
before work can commence at the Arckaringa Project. The
revised terms of the second tranche subscription are now as
follows:
Sino-Aus is to subscribe in cash 180 days from the Effective
Date (as defined below) for 100 million Altona Shares:
(i) at the average market price per share during a specified
period preceding the Effective Date; or
(ii) such other subscription price (if any) as shall have been
agreed in writing between Sino-Aus and Altona.
Returned Funds
The AUD$5 million temporarily returned to Sino-Aus by the JV
Company will be repaid to the JV Company within 90 days of the
Effective Date. The Effective Date is the earliest date on
which the following conditions precedent are satisfied:
(i) The continuance in force and effect of all necessary
Australian Government consents which have been granted or issued
prior to the date of the Deed of Variation and which relate to any
of the transactions contemplated by the JV Agreement or the
Arckaringa Project.
(ii) The acquisition by the JV Company by whatever means of a
PEL applicable to the Licensed Area or such part or parts of it as
the JV Company may accept.
(iii) Receipt by the parties of written confirmation from
WSP-Parson Brinkerhoff that the JV Company has the necessary
permits, including a PEL, to permit it to exploit coal deposits
using UCG technology.
(iv) The grant or issue of any additional Australian
Governmental consents which may be necessary to implement the
Arckaringa Project.
Further Contributions to the JV
Company
Subject to satisfaction of the Conditions Precedent, the Second
Contribution by Sino-Aus (AUD $5.4
million, or such lesser figure as the Board of the JV
Company may determine subject to a minimum of AUD $4.86 million) and the Second Contribution by
Wintask (AUD $600,000), into the JV
Company, will take place 180 days from the Effective Date or such
earlier date as the Board of the JV Company may determine.
The Third and Fourth Contributions by Sino-Aus and Wintask are
payable in accordance with the current JV Agreement.
Qinfu Zhang, Altona Energy’s Executive
Chairman, commented:
“We are very pleased to have agreed the terms of the Deed of
Variation with our Joint Venture Partners and in particular we
welcome the continued support from Sino-Aus. The focus of the
JV Company is now to secure the necessary PEL so we can commence
work on the Arckaringa Project.”
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
Related Party Transaction
Both Wintask and Sino-Aus are related parties of Altona, as both
companies are substantial shareholders in Altona and the revised
joint venture terms constitute a related party transaction as
defined by Rule 13 of the AIM Rules for Companies.
Accordingly, the independent directors, being Phil Sutherland and Nick
Lyth, having consulted with the Company's Nominated Adviser,
Northland Capital Partners Limited, consider that the terms of the
Deed of Variation are fair and reasonable in so far as the
Company's shareholders are concerned.
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy
plc
Qinfu Zhang, Executive Chairman |
+44 (0)7769 906
686 |
Nick Lyth, Non-Executive
Director |
|
|
|
Leander (Financial
PR)
Christian Taylor- Wilkinson |
+44 (0)7795 168
157 |
Northland Capital
Partners Ltd (Nomad and Broker)
Matthew Johnson / Gerry Beaney (Corporate Finance)
John Howes / Abigail Wayne (Corporate Broking)
|
+44 (0)20 3861
6630 |