Australian energy company refuses to sell interest in CTL project
ASX-listed energy company Blackham Resources reports that it has turned down an unsolicited cash offer of $15-million for its 70% interest in the Scaddan Energy coal-to-liquids (CTL) joint venture (JV), in Western Australia (WA).
The company reports that the interested party has offered to pay the amount on completion, and has suggested the payment of a royalty to Scaddan Energy at the rate of A$0.50/t of product mined and delivered from a mining operation on the Scaddan coal project to the run-of-mine ore pad.
The Blackham board is currently evaluating the offer and its obligations under the Scaddan Energy JV agreement. The sale and purchase agreements include conditions, which state that Blackham’s shareholders must approve the sale under ASX listing rule 11.2 and that Blackham will have to obtain Ministerial approval for the transfer of its interests in the Scaddan mining lease.
Blackham has not made any commitment to exclusively negotiate with the interested party but has committed to reimburse its costs and expenses should Blackham sell its interest in the Scaddan coal project in six months of this offer to another party.
The board considers $1.5-million as an appropriate reimbursement cost and has agreed this amount with the interested party. This does not create any obligation on Blackham to commit to the sale if Blackham chooses not to accept the interested party’s offer or to pay the agreed reimbursement cost if Blackham chooses not to proceed with selling its interest in the Scaddan coal project.
Blackham is evaluating the development of the Scaddan and Zanthus energy projects for the export of coal and development of a CTL facility.
The Scaddan and Zanthus energy projects, located near Esperance, in WA, contain large-scale coal deposits totalling 1.4-billion tons with over 10 600 PJ of energy at shallow depth and low mining costs.
The project has the potential to produce 860-million barrels of oil equivalent, consisting mainly of a clean diesel, as well as additional power for the region.
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