Former satelite communications provider Comdek Ltd is expanding its coal interests into Tasmania with the acquisition of Energy Investments Ltd for $4.27 million.
Former satelite communications provider Comdek Ltd is expanding its coal interests into Tasmania with the acquisition of Energy Investments Ltd for $4.27 million.
The deal comes almost three months after Comdek acquired Isicebi Mining Pty Ltd, which has the right to earn a 70 per cent interest in three coal properties in the Waterberg coalfields of South Africa.
West Perth-based Comdek has agreed to acquire 100 per cent of the issued capital of EIL for a consideration of 28.5 million fully paid ordinary Comdek shares, with an indicative value of 15 cents per share, based on the adjusted close price for the five days trading from January 14 to January 18, 2008.
The consideration is equivalent to 4.39 per cent of the current total issued capital of Comdek on a fully diluted basis.
EIL has applied for the Woodbury (Turnbridge) and the Bonnie's Tier (Latrobe) thermal coal projects in Central Tasmania, close to rail and port infrastructure.
Woodbury was the subject of extensive evaluation by three companies including The Broken Hill Pty. Co. Ltd (Now BHP Billiton) over a three year period between 1981 and 1983, but their exploration activities were ceased after plans for a thermal coal fired power station close to Campbelltown were scrapped.
Comdek believes scope exists to significantly increase the coal target at Woodbury to 160 million tonnes of black thermal coal.
The Bonnie's Tier project contains the area of the Mersey-Don coal field at Latrobe, near Devonport in northern Tasmania. The area is prospective for coal and Comdek intends to evaluate the tenement to establish its commercial coal potential.
Comdek said initial phase exploration expenditure of the projects would potentially focus on upgrading and extending the existing historical tonnes of coal and completing a scoping study into potential development.
The acquisition of the coal projects from EIL is subject to a number of conditions including regulatory approvals, completion of due diligence and EIL entering into voluntary escrow for six months with regard to 100 per cent of the issued vendor shares.
Comdek will also issue 7.5 million shares to parties who have advised on the transaction.
In line with its potential reinvention as a fully-fledged coal miner, the company recently appointed prominent Perth-based corporate lawyer Michael Hunt as its non-executive chairman.
Mr Hunt is partner of Hunt & Humphrey project lawyers in Perth and is non-executive chairman of A1 Minerals Ltd and a director of Bulkans Gold Ltd and Red Back Mining Inc.
