Business
Sale of Interest in Mariola Thermal Coal Project
Sale of Interest in Mariola Thermal Coal Project.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n \nRNS Number : 2790M CEB Resources PLC 15 July 2014 \n \n\nCEB Resources plc \n (\"CEB\" or \"the Company\")\nSale of interest in Mariola Thermal Coal Project\nOn 18 February 2014, CEB announced the acquisition of an initial stake of 10% of the ordinary shares of Polish mining company, Carbon Investment Soo (\"Carbon Investment\"), which controls the rights to the Mariola Thermal Coal Project (the \"Project\") located in southern Poland, for GBP200,000 in cash plus 20 million CEB ordinary shares (the \"Investment\"). Under the terms of the option agreement with Carbon Investment (the \"Option Agreement\"), CEB has the right to increase its shareholding to 49% of Carbon Investment's ordinary share capital.\nFollowing an approach to acquire the Investment from Balamara Resources Limited (\"Balamara\"), the Board of CEB has agreed to assign the Option Agreement to Balamara (the \"Assignment\"). ASX-listed Balamara is CEB's farm-in partner at CEB's Peelwood Base Metal project.\nThe consideration due to CEB under the Assignment is AUD$100,000 (approximately GBP55,000) in cash plus 15 million Balamara ordinary shares. As at the closing price of Balamara ordinary shares on 14 July 2014 of AUD$0.078 each, the value of these Balamara ordinary shares in aggregate is AUD$1.17 million (approximately GBP643,500). In addition, the 20 million CEB ordinary shares previously issued to Carbon Investment under the terms of the Option Agreement will be returned to CEB and cancelled. Balamara will perform all remaining obligations of CEB under the Option Agreement and indemnify and hold CEB harmless from any claims, demands or costs falling due under the terms of the Option Agreement.\nThe CEB Board considers that the Assignment is in the best interests of CEB shareholders as the aggregate consideration receivable from Balamara is at a significant premium to the amount CEB paid for the Investment. In addition, going forwards the Company will be able to concentrate all time and funds on the Peelwood Base Metal Project. The Company remains focused on achieving its core objective, which is to expand the resource at Peelwood and, as stated in CEB's Investing Policy, to generate an attractive return for shareholders.\nCEB Chairman Cameron Pearce commented:\n\"In addition to this external validation of CEB's Polish activitie...