Tongjiang International Energy to invest £11.6 million in Altona Resoures
Tuesday , 26 Feb 2008
mineweb.com
Altona Resources Plc, the Australian based energy company, has signed a share subscription agreement ("the Agreement") with Tongjiang International Energy Co. Ltd ("Tongjiang"), a Hong Kong based investment company to raise £11,618,000 through the placing of 240 million new ordinary shares ("Shares) with Tongjiang.
The funds raised will provide Altona with a substantial part of the funds required to complete the final stage of the bankable feasibility study for the Company's 10 million barrel per year coal-to-liquids ("CTL") and 560MW co-power generation Arckaringa Project in South Australia .
Tongjiang is a subsidiary of Tongjiang Group Limited, which has business interests in both China and abroad, primarily in energy and resources. The Board 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 to be an excellent opportunity for Altona to secure significant funding, as well as providing the prospect to open doors in China, where there is increasingly strong demand to secure distillate fuel supply and investment in energy projects.
"We look forward to working with the Board of Tongjiang whose relationships in China with potential offtakers, project financiers and engineering companies could provide great opportunities for the development of Arckaringa. We are very pleased to have reached this Agreement since discussions began in November 2007 and negotiations commenced in January. We are delighted to welcome Tongjiang 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 necessary regulatory and shareholder approvals. . Following the completion of Tranche 2 and 3, Tongjiang would have a 45.9% interest in the issued share capital of the Company. Under the terms of the Agreement, Tongjiang have the right to appoint one director to the Board of the Company, following the completion of Tranche 1.
A notice convening an Extraordinary General Meeting ("EGM") of Altona's shareholders, in order to seek the necessary shareholder approvals will be dispatched to shareholders as soon as possible. The EGM is proposed to be held on or before 15 April 2008.
Application will be made to the London Stock Exchange for the Shares in respect to Tranche 1 to be admitted to trading on AIM and it is expected that admission will be become effective and that trading in the Shares will commence on 29 February 2008. The Tranche 1 shares will represent 7.2% of the Company's enlarged issued share capital following completion of Tranche 1.
The total number of ordinary shares in issue following the completion of Tranche 1 will be 305,165,784.
**ENDS**
For further information visit www.altonaresources.com or please contact:
Christopher Lambert Chairman +44 (0) 20 7024 8391
Christopher Schrape Managing Director +61 (0) 417 984 434
Hugh Oram Nabarro Wells & Co Limited +44 (0) 20 7710 7400
Alastair Stratton Matrix Corporate Capital LLP +44 (0) 20 7925 3300
Victoria Thomas St Brides Media & Finance +44 (0) 20 7236 1177
Hugo 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 to trading on AIM in March 2005. Altona's primary focus is the completion of a bankable feasibility study for its wholly owned Arckaringa Project for an integrated 10 million barrel per year Coal to Liquid (‘CTL') plant with a 560 MW co-generation power facility.
The Company holds, through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100% interest in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362). All three lie close to the Adelaide to Darwin railway and the Stuart Highway. Containing more than 7.5 billion tonnes of coal (based on previous JORC equivalent standards of the time) these coal deposits are effectively one of the world's largest undeveloped energy banks, capable of conversion into clean liquid fuels, low cost power and high value industrial feedstocks.
About Coal-to-Liquids (also see www.altonaresources.com)
CTL is a proven technology which converts coal into more environmentally clean and manageable energy sources including gas and synthetic fuels. The process involves two major stages, gasification to produce synthetic gas ("Syngas") rich in hydrogen and carbon, and a liquefication stage where the Syngas is reacted over a catalyst to produce high quality, ultraclean synthetic fuels and chemical feedstocks.
CTL is a prime example of clean coal technology - the associated combined cycle units produce negligible sulphur oxides, significantly less nitrogen oxides and 10 - 20% less CO2 per unit of power generated than a conventional coal fired plant, whilst carbon capture and storage offers the potential to reduce the overall greenhouse gas emissions from CTL to below the "well to wheel" level of fuels derived from crude oil.
The technology is best demonstrated in South Africa, where currently 30% of the country's gasoline and diesel fuel needs are met through CTL plants.
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