Springsure Creek Train Loadout Infrastructure Agreement
Brisbane, Mar 12, 2012 AEST (ABN Newswire) - Bandanna (
ASX:BND) has entered into a binding agreement with Acacia Coal Limited (ASX:AJC) in relation to the sharing of train loadout infrastructure, in return for Acacia's consents to Bandanna's applications for transportation and infrastructure mining leases over portions of Acacia's EPC 1230.
Under the principles of the agreement Bandanna will make the rail load out facility available to Acacia for 1 Mtpa priority access, with provision for an additional 1 Mtpa, subject to spare capacity. Bandanna will also issue to Acacia 20 million options to acquire fully paid shares in Bandanna, exercisable at $1.50 for five years, vesting on the grant of the infrastructure mining lease.
This agreement clears the way for detailed planning and, subject to approvals, construction of a train loadout facility connecting to the Bauhinia Line as part of Bandanna utilising its 4 Mtpa allocation with WICET from mid 2014.
Bandanna has a rail take-off point on the Bauhinia Line, which connects with the Blackwater - Gladstone Rail corridor and the Wiggins Island Coal Export Terminal, Stage 1 which is currently under construction.
Proposed transportation and infrastructure mining lease applications will be considered as part of the original Terms of Reference for the EIS issued last year in relation to the Springsure Creek Project.
Details
As part of Springsure Creek Project development plans Bandanna has been evaluating a large number of possible transportation corridors which would provide connection between its proposed source mine and rail-head. The agreement with Acacia Coal Limited provides Bandanna with a framework for consent for future applications for transportation and infrastructure mining leases over portions of Acacia's EPC 1230. EPC 1230 is strategically located adjacent to the northern portion of the Bauhinia rail line, operated by QRN, and which connects Xstrata's Rolleston coal mine to Gladstone Port facilities.
Bandanna is a party to the Wiggins Island Rail Project Deed with QRN for rail access, under the Wiggins Island Rail Project, which nominated a potential "take-off" point on the Bauhinia Line suitable for the construction of a spur line, loop and associated rail loadout facilities. With this agreement Bandanna intends to utilise this take-off point which will see these facilities built off a spur line traversing a portion of EPC 1230. The facility is intended to have ample capacity for its proposed Springsure Creek Project and accordingly Bandanna has agreed to provide Acacia with 1 Mtpa of priority access to the rail loadout with an additional 1 Mtpa, subject to any spare capacity not required by Bandanna.
These facilities, together with stockpiles etc, would be funded and owned 100% by Bandanna.
Infrastructure and transportation corridor approvals process forms part of the existing Terms of Reference for the EIS issued for Springsure Creek in 2011.
Commenting on the Agreement Bandanna's new Managing Director Michael Gray said "in essence this is a co-operation agreement based on common sense, which will see significant advantages to both parties and will enable Bandanna to continue to achieve its critical path objectives in order to become Australia's next significant thermal coal producer".
Contact
Bandanna Energy Limited
Michael Gray
Tel: +61-7-3041-4400
Andrew Crook
Mob: +61-419-788-431
Email: info@bandannaenergy.com.au
http://www.bandannaenergy.com.au
| ||
|
