Lodestone Exploration Limited
ABN 20 075 877 075
www.lodestonex.com
Lodestone Exploration Limited
Exploring Queensland
Lodestone Exploration Limited GPO Box 762 Brisbane QLD 4001 Australia
18 June 2008
The Manager
Companies Announcements Office
Australian Stock Exchange Limited
10th Floor, 20 Bond Street
SYDNEY NSW 2000
Farm-In to Moreton Energy Coal Project
Lodestone Exploration Limited (“Lodestone Exploration” or “the Company”) is pleased to
announce that it has executed a Farm-In Deed with Moreton Energy Pty Limited (“Moreton
Energy”) and Orbit Capital Pty Ltd (“Orbit Capital”) to farm in to four coal project areas in the
Beaudesert District of the Moreton Basin in SouthEast Queensland.
The areas subject to farm-in are EPC Application 1302 (Veresdale Scrub Deposit), EPC
Application 1299 (Former Strathnaver Colliery/Bromelton Project) and EPC Application 1313
(Albert River Coal Project). These areas are under applications held by Orbit Capital and
Moreton Energy, who are both controlled by Mr Greg Baynton, a Director of Lodestone
Exploration. Further information on the permit areas is set out in the Company’s “Activities
Program” announced today.
The Farm-In Deed is subject to a number of conditions precedent, including shareholder
approval and ASX granting the Company a waiver of Listing Rule 10.13.3 to permit it to issue
shares pursuant to the Farm-In Deed in the manner described below without the need for further
shareholder approvals. An Extraordinary General Meeting of the Company will be convened for
the purposes of obtaining shareholder approval, and approval of a number of other matters
recently announced by the Company. A Notice of Meeting, Explanatory Memorandum and
Independent Expert Report will be circulated to shareholders shortly.
Under the Farm-In Deed, subject to satisfying exploration and expenditure commitments,
Lodestone Exploration has the right to earn a 50% interest in all three permits. The Company’s
earn-in obligations require it to spend $2 million on exploration on the Permits over a period of
three years.
Under the Farm-In Deed, Lodestone Exploration has agreed to issue up to 9 million fully paid
ordinary shares to Orbit Capital or a related corporate entity in three tranches. The timing of
these issues may depend on the terms of any waiver of Listing Rule 10.13.3 granted by ASX, if
one is granted.
2
The Farm-In Deed provides that the initial tranche of 3 million shares be issued immediately
upon shareholders approving the Farm-In Deed and after all other conditions precedent to the
Deed have been satisfied or waived. The second tranche of up to 3 million shares will be issued
following the grant of the Permits (1 million shares per Permit). The final tranche of up to 3
million shares will be issued after Lodestone Exploration has spent an initial $1 million on
exploration of the Permits at which time 1 million shares will be issued in respect of each Permit
that Lodestone has elected to retain an interest in.
Further details of the Farm-In Deed will be provided to shareholders in the Notice of Meeting
and accompanying documents to be circulated to shareholders shortly for the purposes of the
Extraordinary General Meeting.
Yours faithfully,
Martin Ackland
Chairman
- Forums
- ASX - By Stock
- farm in to moreton energy coal project
Lodestone Exploration LimitedABN 20 075 877...
-
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)