The deal involved Macarthur’s purchase, from its joint venture partners Bowen Basin Exploration (BBE) and Chinese-owned CITC Australia Coal Exploration, of increased interests in six exploration areas in the Bowen Basin for $A48.7 million.
The purchase came on the back of a farm-in arrangement signed in 2001 with CITC and BBE, owned by Macarthur chief Ken Talbot. Under the agreement, Macarthur was required to spend $A7.5 million towards exploration on the tenements over four years, which it met in October 2004.
The acquisitions was satisfied by the issue of about 7.58 million shares at the equivalent price of $A6.37 per share.
The acquisition has simplified the ownership structure with most of the tenements now owned 85-90% by Macarthur and 10-15% by CITC, with Talbot's company now only involved with one tenement.
Last week’s statement said Talbot did not plan to sell any additional shares.
