26th Feb 2008 07:01
Altona Resources PLC26 February 2008 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 26 February 2008 Altona Resources Plc ("Altona" or "the Company") Signs Agreement for Tongjiang International Energy to invest £11.6 million Altona Resources Plc, the Australian based energy company, has signed a sharesubscription agreement ("the Agreement") with Tongjiang International Energy Co.Ltd ("Tongjiang"), a Hong Kong based investment company to raise £11,618,000through the placing of 240 million new ordinary shares ("Shares) with Tongjiang. The funds raised will provide Altona with a substantial part of the fundsrequired to complete the final stage of the bankable feasibility study for theCompany's 10 million barrel per year coal-to-liquids ("CTL") and 560MW co-powergeneration Arckaringa Project in South Australia . Tongjiang is a subsidiary of Tongjiang Group Limited, which has businessinterests in both China and abroad, primarily in energy and resources. TheBoard of Tongjiang include directors with experience in senior government,mining and industry positions within China. Altona Chairman Chris Lambert said, "We believe this agreement with Tongjiang tobe an excellent opportunity for Altona to secure significant funding, as well asproviding the prospect to open doors in China, where there is increasinglystrong demand to secure distillate fuel supply and investment in energyprojects. "We look forward to working with the Board of Tongjiang whose relationships inChina with potential offtakers, project financiers and engineering companiescould provide great opportunities for the development of Arckaringa. We arevery pleased to have reached this Agreement since discussions began in November2007 and negotiations commenced in January. We are delighted to welcomeTongjiang as a major new investor in Altona." Under the Agreement, Tongjiang will invest in Altona in three tranches: • Tranche 1, Tongjiang will invest £1,045,000 by way of a subscription for 22,000,000 Shares at 4.75p per share to be completed by 29 February 2008; • Tranche 2, Tongjiang will invest a further £2,570,500 by way of a subscription for 53,000,000 Shares at 4.85p per share to be completed by 15 April 2008; and • Tranche 3, Tongjiang will invest a further £8,002,500 by way of a subscription for 165,000,000 Shares at 4.85p per share to be completed by 30 June 2008. Tranche 2 and 3 are subject to various conditions, including any necessaryregulatory and shareholder approvals. . Following the completion of Tranche 2and 3, Tongjiang would have a 45.9% interest in the issued share capital of theCompany. Under the terms of the Agreement, Tongjiang have the right to appointone director to the Board of the Company, following the completion of Tranche 1. A notice convening an Extraordinary General Meeting ("EGM") of Altona'sshareholders, in order to seek the necessary shareholder approvals will bedispatched to shareholders as soon as possible. The EGM is proposed to be heldon or before 15 April 2008. Application will be made to the London Stock Exchange for the Shares in respectto Tranche 1 to be admitted to trading on AIM and it is expected that admissionwill be become effective and that trading in the Shares will commence on 29February 2008. The Tranche 1 shares will represent 7.2% of the Company'senlarged issued share capital following completion of Tranche 1. The total number of ordinary shares in issue following the completion of Tranche1 will be 305,165,784. **ENDS** For further information visit www.altonaresources.com or please contact: Christopher Lambert Chairman +44 (0) 20 7024 8391Christopher Schrape Managing Director +61 (0) 417 984 434Hugh Oram Nabarro Wells & Co Limited +44 (0) 20 7710 7400Alastair Stratton Matrix Corporate Capital LLP +44 (0) 20 7925 3300Victoria Thomas St Brides Media & Finance +44 (0) 20 7236 1177Hugo de Salis St Brides Media & Finance +44 (0) 20 7236 1177 Notes to Editors: About Altona Altona Resources Plc is an Australian based energy Company that was admitted totrading on AIM in March 2005. Altona's primary focus is the completion of abankable feasibility study for its wholly owned Arckaringa Project for anintegrated 10 million barrel per year Coal to Liquid ('CTL') plant with a 560 MWco-generation power facility. The Company holds, through its wholly owned subsidiary Arckaringa Energy PtyLtd, a 100% interest in three exploration licences covering 2,500 sq. kms in thenorthern portion of the Permian Arckaringa Basin in South Australia. Theseinclude three coal deposits, Westfield (EL3360), Wintinna (EL3361) andMurloocoppie (EL3362). All three lie close to the Adelaide to Darwin railwayand the Stuart Highway. Containing more than 7.5 billion tonnes of coal (basedon previous JORC equivalent standards of the time) these coal deposits areeffectively one of the world's largest undeveloped energy banks, capable ofconversion into clean liquid fuels, low cost power and high value industrialfeedstocks. About Coal-to-Liquids (also see www.altonaresources.com) CTL is a proven technology which converts coal into more environmentally cleanand manageable energy sources including gas and synthetic fuels. The processinvolves two major stages, gasification to produce synthetic gas ("Syngas") richin hydrogen and carbon, and a liquefication stage where the Syngas is reactedover a catalyst to produce high quality, ultraclean synthetic fuels and chemicalfeedstocks. CTL is a prime example of clean coal technology - the associated combined cycleunits produce negligible sulphur oxides, significantly less nitrogen oxides and10 - 20% less CO2 per unit of power generated than a conventional coal firedplant, whilst carbon capture and storage offers the potential to reduce theoverall greenhouse gas emissions from CTL to below the "well to wheel" level offuels derived from crude oil. The technology is best demonstrated in South Africa, where currently 30% of thecountry's gasoline and diesel fuel needs are met through CTL plants. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Altona Energy