7 Feb 2014 07:00
07 February 2014
Altona Energy PLC
("Altona" or the "Company")
Memorandum of Understanding
Altona Energy Plc ("Altona") (AIM: ANR), the AIM listed energy company, today announces the following update in respect of the Arckaringa Project in South Australia.
Altona has signed a memorandum of understanding ("MOU") with Sino-Aus Energy Group Limited, a British Virgin Islands Company ("Sino-Aus Energy") and Wintask Group Limited ("Wintask"), the Company's 29.04% shareholder (together "the Investing Parties").
The MOU signed with the Investing Parties includes the 'in principle' terms for an investment in Arckaringa, which remains subject to due diligence and the agreement of the final contract. The MOU states the investing parties intention, which is subject to due diligence, to invest 300 million RMB, into Altona and the Arckaringa project, to fund the completion of the Bankable Feasibility Study. The Due diligence is underway and the Company expects that this will be completed on or before 15 May 2014 with the Company making a further announcement in due course.
Wintask is a related party as defined by the AIM rules. Therefore in the event that an agreement with Wintask is signed this may constitute a related party transaction under the AIM rules. Furthermore any agreement will be subject to the necessary regulatory approvals in the United Kingdom, China and Australia.
Altona Chairman Mr Michael Q Zheng said: "The recently announced termination of the joint venture with CNOOC-NEI has enabled the Company to open negotiations in earnest with motivated third parties and the signing of the MOU represents an encouraging next step towards finding the right partner to develop the Arckaringa project.
"Completing a transaction with Sino-Aus Energy would provide Altona with a strategic partner capable of providing the support required for the completion of the BFS and beyond. I believe a future partnership between Sino-Aus Energy and Altona would have the potential to take the Coal to Liquids/ Coal to Methanol project through to completion and thereby realize the world class potential of our project in South Australia."
For further information, please visit www.altonaenergy.com or contact:
Altona Energy Plc Christopher Lambert, Chief Executive Peter Fagiano, Executive Director
| +44 (0) 20 7024 8391
|
WH Ireland Ltd Adrian Hadden James Bavister | +44 (0) 20 7220 1666 |
Old Park Lane Capital Plc Michael Parnes
| +44 (0) 20 7493 8188 |
Tavistock Communications Mike Bartlett Simon Hudson | +44 (0) 20 7920 3150 |
About Altona Energy
Altona Energy is listed on the London Stock Exchange's AIM market. Its focus is firmly on the evaluation and development of the Company's flagship coal-to-liquids Arckaringa Project to exploit the huge coal resources contained in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. The Project is designed to include a modern, combined-cycle power station adding 560Mw to the national grid and to produce clean burning fuel for Australia and the world from a resource equivalent to 7.8 billion barrels.
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