Clean Global Energy Limited (ASX:CGV) Agrees On Terms To Acquire A 20MT Oklahoma Mine Site
Whilst the key terms are confidential, CGEI will acquire, in stages, a coal mine site with a minimum resource suitable for UCG of at least 20 million tonnes of proven coal for $US20m with an option to acquire additional mining sites adjoining the existing site and containing 20-30 million tonnes of coal.
The parties intend to work together to complete the transaction within 6 months during which time, CGE intends to finalise funding for the acquisition of the FCM mine site in addition to funding for Stage 1 of its US project.
The mine site, known as "Cavanaugh", is located only 15 miles from AES Shady Point power station with which CGEI has also entered into an MOU to supply UCG Syngas.
The site was previously mined to a point where the coal is now at a depth more suitable for extraction by UCG.
The parties are working together towards formalizing a binding agreement within the next 120 days, during which time regulatory amendments and approval to use the mine site for UCG production will be sought, along with easement access for a 15 mile pipeline and funding commitments.
CGE, subject to shareholder approvals, if needed, proposes to fund the majority of the project through CGEI.
Securing an existing permitted mine site with all the historical mine data gives CGEI certainty in undertaking UCG activities on the site and being able to deliver UCG Syngas within a relatively short period of time to the nearby AES Shady Point power station.
John Harkins, CGE's Chairman and CEO stated "this is a great outcome for CGE and its shareholders and will allow CGE to fast track its Oklahoma UCG project aspirations.
Clean Global Energy Limited