LONDON (Alliance News) - Altona Energy PLC Wednesday said its partner on the Arckaringa coal project in Australia plans to pay its contribution to the joint venture from a different company than originally intended.
Sino-Aus BVI, which is based in the British Virgin Islands, was set to contribute AUD5.4 million in cash to pay for its share of equity funding under the joint venture agreement signed with Altona concerning the Arckaringa project.
However, Sino-Aus has now altered the agreement and has now novated its rights and obligations to a company called Sino-Aus HK, which is based in Hong Kong and managed by the same directors as the British Virgin Island company, in order to facilitate the banking arrangements required to make the payment.
Sino-Aus BVI has also transferred the 100.0 million shares it held directly in Altona to the company in Hong Kong.
Once Sino-Aus has opened a bank account in Hong Kong, it will be able to make that AUD5.4 million contribution, but will also have to secure the required permissions to transfer the funds from mainland China to Hong Kong, Altona said.
Altona shares were up 3.2% to 0.877 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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