Suitors Conduct Due Diligence On Carabella Resources
October 16 2011 - 11:30PM
Dow Jones News
Suitors are currently taking a close look at Carabella Resources
Ltd.'s (CLR.AU) key Grosvenor West coking coal project in
Queensland, the Australian exploration company said Monday.
The company said a data room has been set up to allow a select
group of unnamed parties to access information under
confidentiality agreements after it received several unsolicited
expressions of interest in the project since listing in late
2010.
"Due diligence investigations have commenced only recently. At
this stage, it isn't certain what form of transaction will be
proposed to the company and it is also uncertain whether an
acceptable transaction proposal will be provided by the interested
parties," Carabella said in a statement to the Australian
securities exchange.
The news helped buoy Carabella's shares, which at 0245 GMT were
trading 13% higher at A$1.90, giving it a market capitalization of
A$165 million.
Carabella holds interests in a portfolio of 10 coal exploration
permits in Queensland and according to its website is focused on
developing Grosvenor West, which has a coking coal resource of
about 92 million metric tons. The asset is located near coal
projects belonging to BHP Billiton Ltd. (BHP), Anglo American PLC
(AAL.LN) and Peabody Energy Corp. (BTU).
The company last week named industry veteran Anthony Quin as its
managing director, succeeding Mitch Jakeman who stepped down in
late August after what the company said were irreconcilable
differences with the board. Quin spent 14 years with BHP, including
two years as chief development officer of its coking coal
business.
Melbourne-based BHP has been linked to a number of possible
acquisitions in recent days, with newspaper reports suggesting a
potential US$6 billion offer for Alabama-based Walter Energy Inc.
(WLT) and separately a GBP2 billion bid for Brazilian iron ore
company Ferrous Resources. BHP has declined to comment on the
reports.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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