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Liberty Resources Limited (ASX:LBY) Exclusive Partnership With ATEC Rail And Transport Group, QLD
Liberty Resources Limited (ASX:LBY) Exclusive Partnership With ATEC Rail And Transport Group, QLD
Perth, Jan 11, 2010 AEST (ABN Newswire) - Liberty Resources Limited (ASX:LBY) is pleased to announce that it has entered into a Memorandum of Understanding (MOU) with Australian Transport and Energy Corridor Limited (ATEC). The objective of the MOU is to finance and jointly develop complementary energy and transportation projects in Queensland. By working together, the Partners believe this will not only enhance the ability to fund large projects in Queensland but will also support the establishment of energy projects that are owned, managed or operated by Liberty.

Foreign investors wishing to fund resource projects in Australia seek both security of supply and security of infrastructure, such as rail. ATEC's rail infrastructure projects and Liberty's resource projects will enhance value for Liberty, ATEC and foreign investors alike.

Liberty's Managing Director, Andrew Haythorpe said, "There is great synergy between Liberty and ATEC, bringing together different skill sets to deliver successful outcomes. After the Global Financial Crisis, Asian based customers have emerged as leading providers of project financing in order to satisfy their thirst for Australian energy. This move enhances our appeal in the eyes of foreign investors and customers alike."

About ATEC - Australian Transport and Energy Corridor Limited (ATEC)

ATEC's vision is to be a dedicated rail infrastructure company in Australia. ATEC has extensive experience in working with State and Federal Government planning and approval arrangements in railway development.

ATEC is growing its capabilities in below rail services and systems. It is focused on developing rail transport corridors for bulk commodities in Queensland and New South Wales principally in coal transportation corridors of Surat Basin, Galilee Basin and Northern NSW/SE Queensland.

ATEC is an equity participant in the Surat Basin Rail project, its first project was secured under an exclusive mandate. It recently announced the commencement of a pre-feasibility study of the Border Railway, a missing standard gauge open access rail link from Moree (NSW) to Toowoomba (QLD).

KEY TERMS OF THE MOU

Under the terms of the MOU, the parties will establish a Special Purpose Vehicle (SPV) to attract finance for the feasibility, design and development of mining, energy projects and rail corridors, which support the establishment of UCG projects that are owned or managed or operated by Liberty. Each party will hold 50% interest of the SPV on establishment.

Both parties will be required to carry out the following within 90 days of signing the MOU:

1. Disclose preliminary information on both the Liberty project viability and the ATEC rail corridor viability where applicable to understand the broad capital and operational requirements of each project.

2. Seek to identify potential partnership arrangements with Indian and Chinese customers and financiers, which are to be pursued by Liberty and ATEC in a joint presentation.

Liberty will work with ATEC to use reasonable endeavors to finalise the commercial and contractual arrangements contemplated under this MOU at the earliest possible date. In any event, however, the Parties agree that this MOU will survive 24 months from the date of signing. This period can be extended with the prior written consent of both Parties.

Capability to the SPV will be provided by Liberty and ATEC and if required, external assistance.

The MOU aligns with Liberty's strategy to become a leader in clean energy production.

About Liberty Resources Limited

LIBERTY RESOURCES (ASX:LBY) (PINK:LYRTF) (FRA:LG4) is committed to developing its large, low cost gas and fertiliser Project in Queensland. We use standard directional drilling to access deep coal, and we apply the latest environmental techniques to inject (saline) water and oxygen to produce low cost fertilisers. Benefits from our Project will include reduction of surface salinity, lower cost of living for remote locations, skilled and professional jobs, low cost gas and electricity and exports – fertiliser and gas.

LIBERTY RESOURCES is headquartered in Subiaco, Western Australia.

 


Contact

Andrew Haythorpe
Managing Director
Tel: +61-8-9287-4488
www.libertyresources.com.au



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