SAMTAN Board Approves A$22.5 Million Investment In Bandanna Energy Limited (ASX:BND)

Bandanna Energy Limited (ASX:BND) is pleased to announce that it has received notification from SAMTAN Co. Ltd ("SAMTAN") that the Board of SAMTAN has approved the A$22.5 million subscription by SAMTAN Aures Pty Ltd for shares in Bandanna (the "Transaction").

Completion of the Transaction is now only conditional upon approval of the Korean Government's Ministry of Knowledge Economy.

Details of the Transaction

As previously announced to the market on 24th September 2009 the Transaction, in summary, entails the following :

- A$22.5 million placement to be made to Korean energy company SAMTAN;

- Placement at A$0.60 per share;

- SAMTAN to hold 10.0% of Bandanna (fully diluted basis) following the placement;

- Funds to be used for on-going programs of exploration, future development appraisal and infra-structure requirements;

- SAMTAN to market Bandanna's coal in Korea and have the right to negotiate the purchase of 20% of Bandanna's coal from its Bowen Basin Projects at market prices;

- Senior Managing Director of SAMTAN, Park Soon IL to join the Bandanna Board;

As at the 24th September 2009, the placement price of A$0.60 per share represented an 18% premium on the last close and a 22% premium on the 30 day VWAP (A$0.49) of BND shares.

About Bandanna Energy Limited

Bandanna Energy Limited (ASX:BND) is uniquely positioned to become Australia's next coal producer. The company's core activities are exploration, project evaluation and development of thermal and PCI coal assets located in Queensland, Australia.

Bandanna Energy is the only ASX listed company with substantial coal assets in both the Bowen and Galilee basins subject to EIS and advanced mine studies. The company is committed to working constructively with the communities in which it operates, and delivering growing returns to shareholders, government and the community.

Bandanna Energy's Springsure Creek underground thermal coal project is scheduled to commence production in mid-2015. Bandanna is a 14% shareholder in Wiggins Island Coal Export Terminal (WICET) Stage 1 at Gladstone, with port allocation of 4Mtpa for the Springsure Creek Project, and has also secured the necessary infrastructure capacity for the integrated rail haulage of coal from the Springsure Creek Project to port.

 

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