Colby's Response to STX Offer, page-242

I've managed to look at The Australian article and it looks like the deal breaker was the Mongolian asset value.

To me what transpired is that any coal seam gas project is hugely expensive. TMK has around 6 million of cash left and TPD needed probably around 3-4million to fund its share of the current program. The 6 million facility sounded like a convertible debt to share facility and TPD would have no way of paying this back. Market may have only valued Mongolia at 20million who knows could even be less which mean if STX had to convert 6 mil dollars worth of shares they would own large chunk of the new TPD Mongolian venture which I don't think they liked the idea of paying 6 million for this venture that they couldn't sell out of and would need to pump even more cash into as the project progress.