Carpentaria Exploration Limited (ASX:CAP) Gains A$4M From FTB Sale
Brisbane, Sep 15, 2011 AEST (ABN Newswire) - Boosting liquid funds for exploration and development of the Hawsons Project, Carpentaria Exploration Limited (
ASX:CAP) today announced the sale of its minority 20 per cent stake in FTB (Qld) Pty Ltd to majority owner Guildford Coal Limited. FTB owns part of the Hughenden Coal Project in Queensland's Galilee Basin. Total consideration comprises A$1.5 million cash, A$2.5 million equivalent of fully paid ordinary Guildford (ASX:GUF) shares and retention of a A$0.50 per tonne royalty on coal production from the tenements, capped at 10 million tonnes per year for 20 years with a potential value of up to A$100 million.
Commenting on the sale, Carpentaria's Executive Chairman, Nick Sheard, said, "This is an excellent deal for Carpentaria shareholders as it not only immediately boosts funding for exploration and development for our projects, it also delivers an interest in Guildford, which has a quality coal project portfolio both in Australia and overseas.
"In addition, should the coal discovered on the FTB tenements be mined, Carpentaria will also directly benefit through the production royalty at no cost to shareholders."
He said the sale allowed Carpentaria to focus on its core activity of iron, gold and base metal exploration in NSW and the development of the multi-billion dollar Hawsons Iron Project near Broken Hill, where more than 1.4 billion tonnes (Bt) of iron ore was delineated in 2010(1) and a positive pre-feasibility study announced on the project in May 2012.
"This deal represents a significant return on the Company's original investment in FTB, due to the value added by Guildford's successful exploration program," Mr Sheard said.
Located in the northern Galilee Basin, the Hughenden Coal Project covers approximately 16,500 square kilometres of exploration permit applications for coal of which an estimated 11,500 square kilometres is owned by FTB. The project is targeting export thermal coal with open cut and underground mining potential, located in close proximity to infrastructure.
On 30 August 2011, Guildford announced an exploration target for Hughenden of 0.58Bt to 5.72Bt(2). The company is progressing to Resource status on multiple projects including Hughenden and in Mongolia, with other coal exploration projects located in the Bowen and Maryborough Basins of Queensland.
Mr Sheard added, "This latest agreement allows the Company to continue its focus on key exploration projects, while maintaining an interest in a promising coal portfolio."
(1) CAP ASX Announcement 17 December, 2010 - Maiden 1.4 billion tonne Resource for the Hawsons Iron Project
(2) GUF ASX Announcement 8 August, 2011 - Hughenden Project Exploration Target
About Carpentaria Resources Ltd
Carpentaria Resources Ltd (ASX:CAP) is focussed on delivering the best quality iron concentrates into the growing premium end of the iron ore market.
The Company aims to build a long term, low cost premium quality iron ore business from the development of its flagship asset, the Hawsons Iron Project, utilising existing infrastructure.
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