UCG project gets financial boost

METEX Resources has secured a major investment in its underground coal gasification plant with a memorandum of understanding signed with chemical and fertiliser group Incitec Pivot that includes an $A11 million share placement and joint venture.
UCG project gets financial boost UCG project gets financial boost UCG project gets financial boost UCG project gets financial boost UCG project gets financial boost

3 UGC Module Power Plant. Courtesy Metex Resources.

Christine Feary

Under the MoU, Incitec will subscribe for 55 million shares in Metex at 20c per share. The MoU also provides for a joint venture company to be established upon completion of the planned UCG trial for the demonstration of commercial-scale syngas.

Incitec will hold a minimum 10.5% stake in Metex and will be granted exclusive global rights to the use of Metex's UCG technology to produce syngas for ammonia and ammonia derived products.

Metex's $20 million UCG trial will target a 100 million tonne JORC-compliant inferred resource identified at Bloodwood Creek in the Surat Basin, South East Queensland.

Approvals for the commercial-scale oxygen-injected trial were granted on April 8, 2008.

Metex said sufficient coal would be quarantined for a minimum 30-year life for any ammonia plant and related facilities which are constructed.

The plant is expected to be commissioned during the third quarter of 2008.

topics

loader