13th Feb 2015 08:29
LONDON (Alliance News) - Altona Energy PLC Friday said it has received the first contribution payment from its joint venture partners in the Arckaringa coal chemical project in southern Australia.
In November, Altona signed a joint venture agreement for Arckaringa with Sino-Aus Energy Group Ltd and Wintask Group Ltd. Under the agreement, Sino-Aus and Wintask agreed to pay a first contribution of AUD6 million into the joint venture company, which has now been partially received.
The USD6 million first contribution was split, with Sino-Aus investing AUD5.4 million and Wintask investing AUD600,000. Altona said Wintask has paid its share, whilst Sino-Aus has paid AUD1.4 million and has agreed with Altona and Wintask to pay the remaining AUD4 million balance of the first contribution before the end of March.
Under the agreement, Sino-Aus and Wintask will make staged payments to invest in the project totalling AUD33 million and provide Altona with GBP2 million of working capital via the placing of shares.
Wintask will subscribe to 20 million shares whilst Sin-Aus will subscribe to 180 million, both in two equal tranches. The shares will be set at a price of 0.1 pence per share, raising an GBP2 million in total for Altona.
Following the placing, Sino-Aus will hold a 26.9% stake in Altona and Wintask will hold a 10.9% stake.
Under the agreement, all the companies will share operational ownership and focus on securing the bankable feasibility study for the project within the next two years. Once approved, Altona and Sino-Aus will hold a 45% interest each in the project, with Wintask holding the remaining 10%.
Altona shares were up 1.1% to 0.910 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Altona Energy