Finalisation of the schemes is pending approval of the Victoria Supreme Court this month. If the court approves, Deepgreen will become a wholly-owned subsidiary of Cambrian.
The merger makes Cambrian a mining finance group with some clout, raising the company’s interests in coal producing and advanced coal development projects in North America and Bangladesh and an advanced gold and antimony mine development in Australia.
Cambrian will emerge with a direct holding of 50.3% (fully diluted) of Western Canadian Coal Corp, 26.5% of Asia Energy, 100% of the Pageton coal mine in West Virginia, and 42% of AGD Mining, after taking into account its existing holdings in Western Canadian and AGD.
In the fourth quarter of 2004, production of the Dillon coal mine in northeast British Columbia will begin and initial site preparation at the Perry Creek mine will commence.
Asia Energy is conducting a final feasibility study on a 15 million tonne per year development of the Phulbari coal deposit in Bangladesh, on which Cambrian will hold a US$1 per tonne royalty. Pageton is presently producing 8,000 tonnes of coal per month for sale in the US power generation market.
Cambrian’s interest in AGD could also increase to a maximum of 51% as a result of it underwriting AGD’s current share issue to finance development of the Augusta gold and antimony mine in Victoria, Australia.
