5th Nov 2015 09:09
LONDON (Alliance News) - Altona Energy PLC shares were trading higher on Thursday after the group said it and its partners on the Arckaringa coal project in Australia reached an agreement on amended terms of the partnership.
Altona shares were up 69% early Thursday to 0.507 pence, the best performer in the AIM All-Share.
Altona said its partners, Sino-Aus Energy Group Ltd and Wintask Group Ltd, will invest a maximum of USD33.0 million in four stages in the project. An initial drilling programme will be planned as part of a bankable feasibility study, set to be compelted within three years.
In addition, Sino-Aus will provide GBP1.25 million in working capital to Altona in two tranches, subject to certain conditions.
"Despite wider market turmoil since the signing of the original agreement, Altona and Wintask have continued negotiations with Sino-Aus and we are delighted to have signed this Deed of Variation to our original agreement with Sino-Aus and Wintask. We look forward to the future funding dates whereafter we can commence the Arckaringa project in earnest," said Qinfu Zhang, Altona's executive chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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