14 Feb 2012 13:30
14 February 2012
Nova Resources Limited
("Nova" or the "Company")
Commencement of coal transportation contract
Further to the announcement made on 17 January 2012, Nova is pleased to announce that a commencement date has been agreed for the coal transportation services contract between ZHCH Mining LLC ("ZHCH") and Transgobi LLC ("Transgobi") (the "Contract"). The services pursuant to the Contract will now commence on 15 May 2012. The Board of Directors are informed that the management of ZHCH expects that if the Contract is executed efficiently and management performs, ZHCH's annual revenue could be about US$30,000,000.00 (about £19,000,000) and annual net profit could be about US$8,000,000 (about £5,000,000).
Following the acquisition of the remaining 30% of Nova Mongolia Corp Pte Ltd by Nova, announced today, all revenue or profit of ZHCH will be fully consolidated into Nova's financial statements.
The Contract is until 15 April 2013 but may be extended for one (1) year by ZHCH. The parties intend to meet close to the expiry of the extended period to re-negotiate the transportation rates of a new contract.
ZHCH will continue to market its logistics services in Mongolia to expand its business.
For enquiries: | |
Nova Resources Limited | Tel: +65 62362985 |
Chan Fook Meng, Chief Executive Officer | |
Daniel Stewart & Company plc (Nominated Adviser and Broker) | Tel: +44 (0)20 7776 6560 |
David Hart James C Felix | |