Bandanna Energy Limited Stock Market Press Releases and Company Profile
Bandanna Energy Limited (ASX:BND) Secures Port Allocation For Coal Export
Bandanna Energy Limited (ASX:BND) Secures Port Allocation For Coal Export

Brisbane, Sep 30, 2010 AEST (ABN Newswire) - Bandanna Energy Limited (googlechartASX:BND) is pleased to announce its inclusion in Stage 1 of the proposed Wiggins Island Coal Export Terminal (WICET) development at Gladstone. This will give Bandanna access to a 4 million tonnes per annum port allocation from early 2014.

In all eight coal producers have committed to a total 27 Mt pa capacity allocation for Stage 1 of the WICET development, an industry funded development which will ultimately see an expansion of the Gladstone port facility by at least 70 Mtpa.

The capacity commitments are the basis for WICET to secure funding for Stage 1, which is the first of three anticipated stages of the terminal development.

Bandanna Managing Director, Dr Ray Shaw, said "the WICET announcement was a significant milestone for Queensland coal production and a very positive step as WICET moves to secure funding and commencing construction."

Bandanna has projects with JORC resources exceeding 1.3 billion tonnes including over 700 million tonnes in the Bowen Basin. Dr Shaw added "Bandanna's transition from explorer to producer has always being predicated on access to port which this decision delivers".

All WICET Stage 1 allocation offers are subject to the respective proponents signing a Take or Pay Agreement and WICET reaching financial close, which is scheduled for the end of April 2011. Each proponent, including Bandanna, has entered into a Deed, supported by a bid bond, detailing its intention to execute a binding Take or Pay Agreement and to meet its proportionate share of WICET's ongoing project development costs up to Financial Close. Bandanna's share of these costs is estimated at A$5.9 million. The Company has already provided a bid bond for A$3.066 million to support its obligations under the Deed.

Funding, following financial close of Stage 1, will be obtained by WICET once it has completed further financial due diligence. An Information Memorandum is currently being prepared for project financing purposes.

Contact

Mr David Campbell
Manager - Exploration
Tel: +61-7-3041-4400

Andrew Crook
Mob: +61-419-788-431

http://www.bandannaenergy.com.au



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