Cuesta shareholders give nod to $20M investment

CUESTA Coal has received shareholder approval for Beijing Guoli Energy’s $A20 million injection into the Queensland coal explorer in the lead up to its initial public offering.
Cuesta shareholders give nod to $20M investment Cuesta shareholders give nod to $20M investment Cuesta shareholders give nod to $20M investment Cuesta shareholders give nod to $20M investment Cuesta shareholders give nod to $20M investment

 

Lauren Barrett

On January 10, Cuesta announced it had snared a legally binding conditional subscription agreement with the Chinese company.

Cuesta shareholders approved the subscription at its extraordinary general meeting on February 2.

The investment is scheduled to take place in two stages.

Stage one will consist of $5 million at 25c pre-IPO in January, with the second stage of the investment including $15 million at the IPO price.

The investment still needs Chinese regulatory and FIRB approval, while Guoli is expected to complete its due diligence.

Cuesta Coal managing director Matthew Crawford said receiving shareholder approval for the transaction was a significant boost for the company.

“The approval of the transaction with Guoli by our shareholders is a significant step forward for the company in our ambitions to list on the ASX in Q1 2012,” Crawford said.

“Both parties have been working together cooperatively and efficiently since the announcement”

Cuesta formed in September last year to acquire the available securities of Queensland coal exploration company Blackwood Coal in preparation for a public listing.

Cuesta’s tenements are located in Queensland’s coal bearing regions of the Surat, Bowen and Galilee basins.

Its focus tenements include West Bowen, East Wandoan and Eastern Galilee.

Australian Pacific Coal joint ventured four EPCs out to unlisted coal explorer Blackwood Coal subsidiary, Blackwood Resources in April 2010.

Under the terms of the JV, Blackwood is expected to pay Australian Pacific Coal $125,000 upon grant of each EPC and is required to expend at least the minimum exploration commitment with the aim to prove up a coal resource and complete a feasibility study for the projects.

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