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Follow on Google News | Empire announces option to buy Coleridge Resources Inc and JV with Alpha Prospects PlcEmpire announces option to buy Coleridge Resources Inc, which has proven SEC compliant coal reserves and completes JV with Alpha Prospects Plc on applications for Tasmania Basin black coal through Alpha Prospects Australia Pty Ltd
Following on from its previous press release on Feb 17th, a London based Plus Market listed public company, Alpha Prospects Plc (Alpha) [APHP:PZ] has agreed, subject to certain conditions, that it will issue 49 million new shares to Empire representing 26.6% of the enlarged capital of Alpha. This agreement between Empire and Alpha will be lodged with the SEC as an 8K filing. Alpha will retain 25% in its original 100% interest in Alpha Prospects Australia Pty Ltd after Empire deploys $2 million USD in drilling and seismic surveys to prove up resources and reserves to a Joint Ore Reserves Committee (JORC) code and reporting standards. Empire will then have earned a 75% interest in Alpha Prospects Australia Pty Ltd post-execution. Alpha Prospects Australia Pty Ltd has been established by Empire on behalf of Alpha, with registered offices in Tasmania and subject to licenses being granted, funding and proving of reserves, expects to share in the returns on the possible sale of potential 10 million tonnes a year of processed coking coal to Asia, at current prices of $235 USD FOB per tonne of coking coal, making projected estimated gross sales receipts of $2.35 Billion per year at todays prices, should the JV prove to Australian JORC code and successfully mine and beneficiate the coal to international coking coal standards. Empire CEO, Mr Malcolm Bendall said “I am currently in South Korea finalizing several commercial deals for Empire and I was pleased to have Christopher Foster, the CEO of Alpha with me to assist. Christopher having gained approval at Alpha’s AGM of the Coleridge agreement, a condition precedent before negotiating our Coleridge Purchase contract, enabled us to sign off on the contract whilst we were all in South Korea. Preliminary scoping studies being coordinated by Empire’s Vice Chairman David Villarreal and Rob Osborn on the mining and transport of Kentucky coal to the Long Beach port in California have been encouraging. It is intended to blend the Kentucky and Tasmanian coals at point of sale. With central appellation thermal Kentucky coal, at $60 a tonne, Australian thermal coal at $111 USD FOB and coking coal at $235 USD FOB a tonne, we believe our new coal ventures, established on the foundations of our $50 million USD Tasmania Basin research program. This program carried out over the last 30 years, which included vitrinite reflectance and geochemical analyses of cored and outcropping coals and the combination of 15 years of work by Coleridge in consolidating and quantifying to SEC requirements the Kentucky coal. Tasmania already has pre Joint Ore Reserves Committee (JORC) code 500 million tonnes of coal (over 50 years supply at 10 Million Tonnes a year) and Empire intends to identify and exploit further reserves subject to satisfactory JV arrangements. We think we can exploit 10 million tonnes a year shipped by 400,000t Brazilian bulk carriers. Empires subsidiary company, Great South Land Minerals Ltd drilling program is still planned to start on 2nd April and the mud loggers and engineers have arrived. We intend to drill as soon as we get the go ahead from the Tasmanian state government departments.” This Press Release contained forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as “expect,” “anticipate,” Contact: Malcolm Bendall +61 3 6231 3529 # # # Empire is an international oil and gas exploration company, focusing on developing assets in one of the world's last virgin basins and to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Tasmania's central and northern basins. End
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