Cambrian bows out of ASX

LESS than a year after listing, London-based Cambrian Mining will bow out of the Australian Stock Exchange, with Australian shareholders being transferred to Cambrian's UK registry on London’s AIM.

Staff Reporter

Cambrian’s coal interests are centred in Canada, where it holds a 42% share in Western Canadian Coal and a 34% share in Coal International.

Cambrian told investors today the decision to end its ASX listing came because the number of Chess Depositary Interests (CDIs) on issue has never reached the level expected and the proportion of CDIs on issue relative to the total issued capital of Cambrian is only around 4%.

CDIs allow investors to obtain the economic benefits of foreign financial products without actually holding legal title to those financial products.

“The costs associated with maintaining the ASX listing of CDIs are substantial, relative to the number of CDIs on issue and the daily average volume traded on ASX,” the company said.

“The board of Cambrian believes that these costs outweigh the limited benefits of the listing to Cambrian, its shareholders, and specifically its Australian-based shareholders.”

Cambrian will form a facility for Australian shareholders to sell their shares on AIM and will also bear the related transfer costs to shareholders.

When Cambrian first listed in September 2006, it was trading at a steady $3.20 per share – this morning shares opened at $2.70.