Offshore partners likely at MetroCoal's Surat Basin projects

METROCOAL is negotiating with both foreign and Australian parties in a bid to clinch joint venture partners for its promising thermal coal projects in Queensland’s Surat Basin.
Offshore partners likely at MetroCoal's Surat Basin projects Offshore partners likely at MetroCoal's Surat Basin projects Offshore partners likely at MetroCoal's Surat Basin projects Offshore partners likely at MetroCoal's Surat Basin projects Offshore partners likely at MetroCoal's Surat Basin projects

MetroCoal's Surat Basin coal projects.

Lou Caruana

This follows the successful raising of $24 million from Chinese giant DADI Engineering Development Group last year through a share placement, which has now received final Chinese government approval, making it the company’s second largest shareholder.

“The process of seeking a joint venture partner in EPC1164 and EPC 1251 [Wandoan West area tenements] is continuing,” MetroCoal said.

“MetroCoal recognises that the process is taking longer than anticipated in 2011. However, the interest from a number of foreign and Australian parties remains positive.

“Visits to the Bundi project have taken place and negotiations will continue into early 2012.”

MetroCoal secured a placement of 32.0 million shares to DADI at 75c per share to raise $24 million, with an initial $2.4 million placement on September 16.

On 14 November 2011, MetroCoal announced that all Chinese government regulatory approvals had been received.

The balance of the placement, 28.8 million shares worth $21.6 million, was conditional on MetroCoal shareholder approval, which was received at its annual general meeting on November 24.

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