Altona JV gains approval of Australian Foreign Investment Review Board
AIM-listed Altona Energy's recently incorporated Australian joint venture entity, Arckaringa Coal Chemical joint venture (JV), has been approved by the Australian Foreign Investment Review Board (FIRB).
Altona Energy
18.00p
08:24 01/03/19
FTSE AIM All-Share
745.29
16:54 18/04/24
Mining
10,662.18
17:14 18/04/24
The FIRB's approval of the JV is one of the conditions needed to be met ahead of the transfer of the exploration licences into the new entity, which is owned by Altona and its two joint venture partners, Sino-Aus Energy Group and Wintask Group.
Altona still needs to obtain ministerial consent for the transfer of the exploration licences into the JV company and to gain the approval of Altona shareholders for the issue of new shares at a price of 1p each, at the annual general meeting on 16 December 2014.
The company believes that ministerial consent is expected to be given shortly, it said.
It continued: "Relations between China and Australia are at an all-time high, with the two governments signing a free trade agreement on 17 November 2014, which will see, among other benefits, the removal of tariffs on all resources and energy products. Coal remains the second largest export from Australia to China, with over AUD9 billion of product exported in 2013.
The group added that with the new trade agreement in place between China and Australia, it is "confident that the Arckaringa project will deliver on its world class potential and provide significant returns for our shareholders in the future".
The news prompted a 4.44% rise in the share price to 0.949p.