maryborough coal ipo

5 September 2008
Company Announcement Office ASX Limited
Maryborough Coal IPO - Expanded Exploration Strategy
On 27 August 2008 the Company reported a net consolidated operating profit for the six months ended 30 June 2008 of $518,792. This was the first interim financial result reported by the Company since its incorporation on 11 October 2007.
In the six months since listing, the Company has made significant progress.
• A high-resolution airborne geophysical survey was completed.
• Agreement was reached with Dynasty Metals Australia Limited with respect to exploration on EPC956 and EPC957.
• A seismic programme capturing approximately 29 line kilometres of data, spread over all four granted EPC areas of Tiaro Coal Joint Venture (TCJV) and TCJV/Dynasty joint ventures were acquired by the seismic contractor, with data now being compiled for analysis and interpretation.
In order to maintain this progress, the directors are of the view that exploration on EPC 972 be expanded and they support a public fundraising through Maryborough Coal Limited, a wholly owned subsidiary of the Company.
The Company will transfer a 25% interest in EPC 972 to Maryborough Coal upon it receiving from Maryborough Coal:
• 30 million fully paid shares and 10 million options to subscribe for fully paid shares exercisable at 35 cents on or before 3 years from the issue date;
• a two year convertible note with a face value of $2 million, convertible at Maryborough Coal’s option to shares at an issue price of 30 cents per share (6,666,667 shares); and,
• Maryborough Coal providing $1.5 million to fund expenditure on EPC 972 (the Company will increase its interest in the TCJV through the expenditure of these funds).
Further details of the transaction and Maryborough Coal’s public offer can be found in the prospectus lodged by Maryborough Coal with the ASIC on 5 September 2008.
Maryborough Coal intends to offer for subscription 12,500,000 shares in the capital of Maryborough Coal at an issue price of 20 cents per share to raise $2,500,000 (Offer) and apply for admission to the official list of ASX Limited.
The Offer of the securities will be made in the prospectus. To subscribe for Shares, applicants will need to complete the application form that is in, or accompanies, the prospectus. Applicants should consider the prospectus in deciding whether to acquire the Shares.
The prospectus, including the application form, can be viewed and downloaded at www.maryboroughcoal.com.au.
Requests for the prospectus and application form can also be made by phoning Maryborough Coal on +61 2 9251 7177.
For further information please contact
Peter Meers Chief Executive Officer
Telephone: +61 2 9251 7177