trading halt after merger query

Australasian in trading halt after merger query
5th February 2009, 10:00 WST

Shares in Australasian Resources entered a trading halt today after major shareholder Clive Palmer cast doubts on its proposed merger with his Resources Development International.

Mr Palmer said the proposal to merge his Hong Kong investment vehicle with Australasian in a float on the HKSE could be delayed until 2010, depending on the state of international markets.

The original plan was to build RDI into a diversified resources house worth up to $18 billion, incorporating iron ore, nickel and gas projects, including Australasian’s flagship $2.7 billion Balmoral South magnetite project in the Pilbara.

Australasian, which Mr Palmer owns a 66 per cent stake in, was to be taken over as part of the float.

Australasian shares fell 3¢ to 36¢ yesterday before the stock entered a trading halt this morning.

The stock will remain in trading halt pending an announcement by the company.

LOUISE BURKE