Carbon Energy Limited (ASX:CNX) Completes Sale Of Laverton Gold Interests For A$2.5 Million
Brisbane, Nov 30, 2009 AEST (ABN Newswire) - Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) announced it has executed an Asset Sale Agreement with Crescent Gold Limited (ASX:CRE) (as announced previously on the 14 August 2009) pertaining to the sale of all of its gold interests in the Laverton area of Western Australia.
The total consideration is A$2.5 million in cash (payable as A$1 million on execution of the agreement, and A$1.5 million in 6 months). A further payment of A$1.5 million will be made once gold production has exceeded 75,000 ounces.
The Agreement is subject to conditions precedent which include Government consents.
The funds received will be used to accelerate a number of commercialisation opportunities associated with the development of Carbon Energy's Underground Coal Gasification (UCG) projects in Australia and internationally.
The execution of this agreement completes Carbon Energy's programme of divesting non-core assets and is consistent with its strategy to focus on becoming an energy company utilising its expertise in UCG. To date A$9 million has been raised from the divestment programme including:
- The divestment of its 6.1% shareholding in Magma Metals Ltd realising A$6.5 million in cash.
- The lodgment of the Prospectus for Energia Minerals NL (Energia) on the 17 November 2009. Energia is the company established to advance the development of the uranium assets developed to date by Carbon Energy. Carbon Energy Shareholders have been invited to participate in a priority offer to invest in Energia with CNX retaining an interest in 29 million shares (representing approximately 42% of Energia, post IPO based on a full raising of A$7.5M).
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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