REY Resources Gujarat Takeover Offer Lapsed
Gujarat Takeover Offer Lapsed Highlights
• Takeover offer by Gujarat NRE Coking Coal Limited has lapsed.
• Gujarat received less than 0.5% acceptances from Rey shareholders.
• Gujarat’s current shareholding of 12.38% is less than its shareholding at the commencement of the offer of around 16.6%.
• Management remains focused on delivering value from the company’s Canning Basin thermal coal project.
• The definitive feasibility study on the Duchess Paradise Project is progressing rapidly, with key project consultants appointed and mine planning advancing.
Rey Resources (REY) is focussing on the development of its thermal coal properties. It owns coal, oil and gas tenements in north-west Australia that have excellent potential for large scale development. The company aims to create shareholder value through the development of its coal properties.
Rey was listed on the Australian Stock Exchange in June 2006. Gujarat Offer Rey Resources (REY) is pleased to announce that the opportunistic takeover bid by one of its major shareholders, Gujarat NRE Coking Coal Limited, (“Gujarat”) has now lapsed. On 3 June 2009, Gujarat announced its intention to make a conditional takeover offer for Rey with an offer consideration of 1 Gujarat share for every 5 Rey shares. On 17 July 2009 Gujarat announced a cash alternative of 9 cents per share to its proposed share offer. The takeover offer was formally dated 3 August 2009. The unanimous view of the Directors of Rey, throughout the takeover period, was that the Gujarat Offer did not reflect the value of Rey shares.
This view was supported by substantial prices paid for other coal assets during this period. During the takeover period of approximately 11 months, Gujarat received less than 0.5% acceptances from Rey shareholders. In fact, Gujarat’s current shareholding of around 12% is less than its shareholding of around 16.6% at the commencement of the Offer. The Board is continuing to focus on ensuring that the value of its Canning Basin thermal coal project is maximised for the benefit all Rey shareholders Definitive Feasibility Study Progress Rey’s major asset is the 100% owned Canning Basin Coal Project which has a total JORC resource of 510 million tonnes, as per categories below, of thermal coal within a very large coal deposit. A positive pre-feasibility study for the project has demonstrated the large scale potential of the basin. Rey has commenced a definitive feasibility study for an initial highwall mining operation. Projections are for two million tonnes per annum of saleable coal production with an expected mine life of eight years.
Drilling during 2010 is designed to provide the data necessary to complete the study. Most key transportation infrastructure for the proposed initial operation is in place. Coal is planned to travel by road for 180 km to the Port of Derby where Rey holds a lease over port facilities, and then be shipped to the nearby growing markets in China and India. Rey has appointed Mr.
Ron Hite as Project Director. Key geological, engineering and other consultants have now been engaged to complete the definitive feasibility study. Pursuant to listing rule 3.4.2, attached is an updated top 20 and shareholder distribution table following the close of the Gujarat takeover offer on 9 July 2010..
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