Aston sells 15% of Maules Creek to Itochu

Finance

Publishing Date: 08 Dec 2010 11:55am GMT
Author: Mining Journal

Australian coal company Aston Resources Ltd has agreed to sell 15% of its flagship Maules Creek project in New South Wales to Itochu Corp, one of Japan’s largest resources and trading companies.

Aston, which listed in Australia earlier this year, is to receive A$345 million for the sale, which would be paid in a single tranche.

In addition, the two parties have also signed an agreement that would allow Itochu to buy a further 10% in the project.

The deal would allow Itochu the option to purchase up to 15% of the coal produced from the joint venture annually, Aston said.

Todd Hannigan, Aston chief executive, said: “The combined skills and experience of Itochu and Aston will be exploted to rapidly develop the world-class Maules Creek project.

“This transaction builds on the solid foundations established at the initial public offering and Aston now has a range of options to fully fund the development of the project.”

The transaction is subject to foreign investment review board (FIRB) approval and other conditions. The announcement pushed Aston more than 5% (A$0.42/share) higher on the ASX.