ord river resources deals into lucrative coal

Frank has provided this information to Proactive Investors today with the info re the Coal venture:

thanks Frank.


Ord River Resources deals into lucrative coal market through GRAM takeover of Caledon Resources

Tuesday, November 09, 2010 by John Phillips

Ord River Resources (ASX: ORD) can purchase between 5% and 10% of Caledon Resources (ASX: CCD, LON: CDN) at the takeover price paid by Chinese state owned investment firm Guangdong Rising Assets Management Co (GRAM), providing Ord River with an entry into the lucrative coal market.
Ord River has a legally binding option with GRAM to purchase the interest at the price paid at the completion of the acquisition, with no obligation to contribute capital to Caledon or carry out any work for Caledon post the acquisition.

The offer values the Australian coking coal producer at around A$400 million, or ?251.6 million, a 34% premium to its closing price of ?0.8375 on Friday 5 November and a 53% premium to its volume weighted average price of ?0.7316 for the 20 trading day period leading up to the offer.

Peter Shou, managing director of Ord River, said ?we are delighted to announce ORD?s participation in connection with the possible acquisition of Caledon, which is a significant event in the development of ORD since our turnaround started in 2009.
"We have worked very hard on the possible acquisition and we will continue to work with GRAM towards GRAM and Bidco in a position to proceed with the acquisition."
Caledon?s flagship project is the formerly mothballed Cook mine in Queensland purchased in 2006.
In 2009, Caledon mined 604,000 tonnes of coal from Cook, up from 548,000 tonnes in 2008.

The latest figures show the group?s raw coal production from operation rose 35% to 174 million tonnes of raw coal in the three months to the end of June.

Caledon has targeted saleable output of 700,000 tonnes this year.
The group is currently carrying out a feasibility study on the neighbouring Minyango prospect, which it also bought back in 2006, which has a JORC compliant resource of 342 million tonnes.

GRAM has investments in a range of listed and unlisted entities across a wide range of sectors, including non-ferrous metals, technology, hotels and construction.
GRAM has recently been active in the mining sector having acquired a 19.9% interest in PanAust Limited, an ASX listed copper and gold mine operator for A$215 million in 2009.
Article highlight:
With an option to purchase a 10% stake in coking coal miner Caledon Resources at the same price as Guangdong Rising Assets Management (GRAM), Ord River Resources can ride the wave of GRAM's commitment to grow Caledon into a significantly larger operation.


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