Guildford seeks another ASX listing

GUIILDFORD Coal has secured financial services provider UBS to investigate a separate Australian Securities Exchange listing for its Mongolia-based subsidiary Terra Energy, as Guildford moves closer to becoming a Mongolian coal producer.
Guildford seeks another ASX listing Guildford seeks another ASX listing Guildford seeks another ASX listing Guildford seeks another ASX listing Guildford seeks another ASX listing

Terra's projects in Mongolia, image provided by Guildford Coal.

Lauren Barrett

The move to separate Terra Energy from Guildford Coal would enable shareholders to invest directly in the Mongolian projects and would provide Terra Energy with a separate management team.

It would also give the Mongolian subsidiary more opportunities to pursue funding and growth strategies, while enabling Guildford to focus on the commercialisation of its Queensland projects.

Guildford recently increased its stake in Terra Energy by 50% to take a shareholding of 70%.

First coal from Terra Energy’s South Gobi project in Mongolia is expected in the first half of next year.

Guildford chairman Craig Ransley said the near term production could potentially deliver in excess of $A48 million per annum of operating cash flow to Terra Energy.

“Guildford intends to invest its share of distributable cash flow into the development of its Queensland projects,” he said.

Since acquiring Terra Energy in 2011, Guildford has drilled in excess of 10,000 metres at its South Gobi and Middle Gobi tenements.

Middle Gobi has an exploration target of 29-149 million tonnes and is located about 200 kilometres north of the Tavan Tolgoi Project.

Five drill rigs are operating at the thermal and coking coal projects, including four in South Gobi and one in Middle Gobi.

Terra Energy plans to secure a mining licence for the South Gobi project by the end of this year.

After a mining licence is granted the prospect has the potential to produce 2-3Mtpa of open cut coal.

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