Some promising and encouraging news for us REY holders, it...

Some promising and encouraging news for us REY holders, it should be a good year us in 2011 :))

"With Rey milestones due in 2011, current valuation of circa $50 million based on enterprise value to resource tonne, may in hindsight appear very cheap" -http://www.proactiveinvestors.com.au/companies/news/12096/rey-resources-readies-for-major-milestones-developing-canning-basin-thermal-coal-project--12096.html


http://www.proactiveinvestors.com.au/companies/news/12178/rey-resources-in-a-trading-halt-pending-capital-raising-announcement-12178.html

Rey Resources in a trading halt pending capital raising announcement
Wednesday, December 01, 2010

The ASX has granted a trading halt to Rey Resources (ASX: REY) pending an announcement by the company of a capital raising.

Rey has not yet announced which project the potential new funds will be allocated to, but earlier in the week the company announced a massive potential thermal coal resource at its Duchess Paradise project.

The project is ideally located in the Canning Basin of Western Australia for export to coal strapped markets of India (and China), with Rey able to fend off two takeover offers from Asian suitors attempting to acquire Rey at pre-definitive study and project development prices.

The 2010 drill program saw Rey progress Duchess Paradise Project in a number of areas.

A pre-feasibility study demonstrated project viability on a 511 million tonne thermal coal JORC resource, with an initial highwall mining operation of 2 million tonnes per annum with a 20 year minelife for export was estimated to have a pre tax net present value of; $88 million at A$/US$ 90c and US$80/t (Newcastle 6,300gar).