7th Feb 2014 09:39
LONDON (Alliance News) - Altona Energy PLC Friday said it has signed a memorandum of understanding with Sino-Aus Energy Group Ltd and Wintask Group Ltd for the development of the Arckaringa Project in South Australia, just days after the company ended a joint venture with China National Offshore Oil Company to develop the site.
The Australian coal-focused energy company said that the deal involves the principle terms for an investment in the Arckaringa coal-to-liquids project. It is subject to due diligence and the agreement of the final contract, but Altona expects the deal to be completed on or before May 15.
The company said the investing parties plan to invest RMB300 million into Altona and the Arckaringa project to fund the completion of the site's bankable feasibility study.
Sino Aus is a British Virgin Islands company and Wintask is already a 29.04% shareholder in Altona.
Altona said January 31 that it had ended the CNOOC joint venture, saying that working with the Chinese firm was becoming increasingly frustrating.
"I believe a future partnership between Sino-Aus Energy and Altona would have the potential to take the Coal to Liquids/Coal to Methanol project through to completion and thereby realise the world class potential of our project in South Australia," Altona Chairman Michael Zheng said in Friday's statement.
Altona energy shares were up 11.0% to 1.39 pence Friday morning, putting it in the top AIM gainers.
By Tom McIvor; [email protected]; @TomMcIvor1
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