CityView Corporation Limited (ASX:CVI) Progress Report On Velvogen
On October 19, 2009 Velvogen received confirmation of:-
(i) the supply to Velvogen of 750,000 tonnes of anthracite/coking coal fines for a minimum period of seven years at contract price;
(ii) the procurement of an off take agreement for the anticipated annual production of 600,000 tonnes per annum of briquettes; and
(iii) the arrangements for the Richards Bay loading facilities to export briquettes.
The progress of the pilot plant for the briquetting process has been sufficiently encouraging for CityView to proceed to the next stage of the transaction. Accordingly CityView is now pursuing the requisite steps to acquire the agreed 74% of the shares of Velvogen in consideration of the assignment of its receivable from Fortitude Minerals Limited of US$10,172,807. The remaining 26% of the shares of Velvogen are held under the Black Economic Empowerment regulations.
CVI Energy Corporation Limited