Altona
Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
26 February
2008
������ Altona Resources Plc
(“Altona” or “the Company”)
Signs Agreement for Tongjiang International Energy to invest
�11.6 million
Altona Resources Plc, the Australian based energy company, has signed a
share subscription agreement (“the Agreement”) with Tongjiang
International Energy Co. Ltd (“Tongjiang”), a Hong
Kong based investment company to raise �11,618,000 through the
placing of 240 million new ordinary shares (“Shares) with Tongjiang.
The funds raised will provide Altona with a substantial part of the
funds required to complete the final stage of the bankable feasibility study
for the Company’s 10 million barrel per year coal-to-liquids (“CTL”)
and 560MW co-power generation Arckaringa Project in South Australia .
Tongjiang is a
subsidiary of Tongjiang Group Limited, which has business interests in both China and
abroad, primarily in energy and resources.�� The Board of Tongjiang include
directors with experience in senior government, mining and industry positions within
China.
Altona Chairman Chris Lambert said, “We believe this agreement
with Tongjiang to be an excellent
opportunity for Altona to secure significant funding, as well as providing the
prospect to open doors in China,
where there is increasingly strong demand to secure distillate fuel supply and
investment in energy projects.� �
“We look forward to working with the Board of Tongjiang whose
relationships in China
with potential offtakers, project financiers and engineering companies could
provide great opportunities for the development of Arckaringa.� We are very
pleased to have reached this Agreement since discussions began in November 2007
and negotiations commenced in January.� We are delighted to welcome Tongjiang
as a major new investor in Altona.”
Under the Agreement, Tongjiang will invest in Altona in three tranches:
�
Tranche 1,
Tongjiang will invest �1,045,000 by way of a subscription for 22,000,000 Shares
at 4.75p per share to be completed by 29 February 2008;
�
Tranche 2,
Tongjiang will invest a further �2,570,500 by way of a subscription for
53,000,000 Shares at 4.85p per share to be completed by 15 April 2008; and
- Tranche 3, Tongjiang will invest a
further �8,002,500 by way of a subscription for 165,000,000 Shares at
4.85p per share to be completed by 30 June 2008.�
Tranche 2 and 3 are subject to various
conditions, including any necessary regulatory and shareholder approvals. .�
Following the completion of Tranche 2 and 3, Tongjiang would have a 45.9%
interest in the issued share capital of the Company.� Under the terms of the
Agreement, Tongjiang have the right to appoint one director to the Board of the
Company, following the completion of Tranche 1.
A notice convening an Extraordinary General Meeting (“EGM”)
of Altona’s shareholders, in order to seek the necessary shareholder
approvals will be dispatched to shareholders as soon as possible.� The EGM is
proposed to be held on or before 15 April 2008.
Application will be made to the London Stock Exchange for the Shares in
respect to Tranche 1 to be admitted to trading on AIM and it is expected that
admission will be become effective and that trading in the Shares will commence
on 29 February 2008.� The Tranche 1 shares will represent 7.2% of the
Company’s enlarged issued share capital following completion of Tranche
1.
The total number of ordinary shares in issue following the completion
of Tranche 1 will be 305,165,784.
**ENDS**
For further
information visit www.altonaresources.com
or please contact:
Christopher
Lambert���� Chairman��������������������������������������������� +44 (0) 20
7024 8391
Christopher
Schrape���� Managing Director ������������������������������ +61 (0) 417 984
434
Hugh Oram����������������� Nabarro
Wells & Co Limited��������������� +44 (0) 20 7710 7400
Alastair
Stratton����������� Matrix Corporate Capital LLP� ����������� +44 (0) 20 7925
3300
Victoria Thomas���������� St Brides Media & Finance������������������ +44 (0) 20 7236 1177
Hugo de
Salis�������������� St Brides Media & Finance ����������������� +44 (0) 20 7236 1177
Notes to Editors:
About Altona
Altona
Resources Plc is an Australian based energy Company that was admitted to
trading on AIM in March 2005.� Altona’s primary focus is the completion
of a bankable feasibility study for its wholly owned Arckaringa Project for an
integrated 10 million barrel per year Coal to Liquid (‘CTL’) plant
with a 560 MW co-generation power facility.
The Company
holds, through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100%
interest in three exploration licences covering 2,500 sq. kms in the northern
portion of the Permian Arckaringa Basin
in South Australia.
These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and
Murloocoppie (EL3362).� All three lie close to the Adelaide
to Darwin
railway and the Stuart Highway.
Containing more than 7.5 billion tonnes of coal (based on previous JORC
equivalent standards of the time) these coal deposits are effectively one of
the world’s largest undeveloped energy banks, capable of conversion into
clean liquid fuels, low cost power and high value industrial feedstocks.
About Coal-to-Liquids (also see www.altonaresources.com)
CTL is a
proven technology which converts coal into more environmentally clean and
manageable energy sources including gas and synthetic fuels. The process involves
two major stages, gasification to produce synthetic gas (“Syngas”)
rich in hydrogen and carbon, and a liquefication stage where the Syngas is
reacted over a catalyst to produce high quality, ultraclean synthetic fuels and
chemical feedstocks.
CTL is a prime
example of clean coal technology - the associated combined cycle units produce
negligible sulphur oxides, significantly less nitrogen oxides and 10 –
20% less CO2 per unit of power generated than a conventional coal
fired plant, whilst carbon capture and storage offers the potential to reduce
the overall greenhouse gas emissions from CTL to below the “well to
wheel” level of fuels derived from crude oil.
The technology
is best demonstrated in South
Africa, where currently 30% of the
country’s gasoline and diesel fuel needs are met through CTL plants.�
Victoria Thomas
Chaucer House
St Brides Media
& Finance Ltd
38 Bow Lane
London EC4M 9AY
T: +44 (0)
207 236 1177 | M: +44 (0) 7866 705 793 | F: +44 (0) 207 236
1188 | www.sbmf.co.uk
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