Under the agreement, Internickel will acquire the Kingaroy Coal project by acquiring Metallica’s subsidiary, SE QLD Energy, for the consideration of 30 million shares in Internickel with one free attaching option at 20c. Metallica will also receive royalty payments of 40c per tonne of coal produced from the project.
Internickel will issue 30 million shares and 30 million options to Metallica, which said it will most likely distribute the options to its shareholders.
The Kingaroy Coal Project includes the Taabinga Coal Resource and other drilled coal prospects and is 25km from the Tarong Power Station.
The Project was valued at $7 million by consultants Tennent Isokangas.
Internickel plans to re-list on the Australian Stock Exchange as Intercoal by mid-2005, and will be headed by former Peabody Energy Australian managing director Darian Hielscher.
